More and more Americans give each year and their combined donations add up. Latest data from the IRS says 30.7% of U.S. taxpayers representing more than 40 million tax returns gave enough that they itemized their contributions. That is a substantial increase. The 40.6 million returns with donation deductions in 2004 compares with 38.6 million in the previous year.*

Though the IRS is not reporting data on it yet, other sources show that giving continued its upward trend in 2005. See our blog entry about 2005 giving.

As the amount of funds flowing to charities swells, attention must be turned to questions of whether the money is going to the most effective groups and producing meaningful results. Generosity is only half of the job for donors. The other half is wise decision-making about where and how to give. See the donor checklist ten practical steps to follow when making large donations.

*As reported in the IRS Statistics of Income Bulletin for spring 2006.