(This information is provided by the Center on Philanthropy at Indiana University)
The Obama Administration has proposed changes to the tax code—including some related to charitable giving—to increase federal revenue in the face of a slow economy and a mounting federal deficit.
Tax incentives for charitable gifts have existed in the U.S. since 1917 to encourage private philanthropy for public benefit and to signal its importance to our society. While research shows most people don’t give solely because of tax advantages, it also finds those incentives do spur more giving.
Under the Administration’s proposals, higher income Americans, who provide a disproportionately large share of total giving, would see a lower value for their charitable tax deduction starting in 2012, and higher tax rates beginning in 2013.
What does this mean for charitable giving?