Tax Policy and Giving

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https://hdl.handle.net/1805/6361

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Browsing Tax Policy and Giving by Subject "charitable giving"

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    Charitable Giving and Tax Incentives
    (2019-06-03) Osili, Una; Rooney, Patrick; Zarins, Sasha
    Over $400 billion were donated to nonprofits in 2017, a record high. However, despite the increases in charitable dollars, the share of households that donate has been declining: in 2000, 67 percent of American households donated to nonprofits, but in 2014, only 56 percent of American households donated. This trend in decreasing donors pre-dates the passage of the 2017 Tax Cuts and Jobs Act (TCJA), but could be accelerated by the recent policy changes. TCJA significantly changed federal tax policy and these changes are expected to affect charitable giving [3-5]. Nonprofit leaders, as well as policymakers, have been exploring additional policy proposals to offset the potential negative impact on charitable giving.
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    Tax Incentives for Charitable Giving: New Findings from the TCJA
    (Indiana University Lilly Family School of Philanthropy, 2024-07-29) Han, Xiao; Hungerman, Daniel M.; Ottoni-Wilhelm, Mark
    The Tax Cuts and Jobs Act eliminated federal charitable giving incentives for roughly 20 percent of US income-tax payers. We study the impact of this on giving. Basic theory and our empirical results suggest heterogeneous effects for taxpayers with different amounts of itemizable expenses. Overall, the reform decreased charitable giving by about $20 billion annually. Using a new method to adjust estimates for retimed giving, we find evidence of moderate intertemporal shifts from pre-announcement of the law. The permanent price elasticity of giving estimates range from .6 for the average donor to over 2 for those predicted to be most responsive to the reform.