March 21, 2017

CUA Law Professor Roger Colinvaux recently published an article entitled "The Importance of a Participatory Charitable Giving Incentive" (Tax Notes, Vol. 154, No. 5, 2017). See below

The Importance of a Participatory Charitable Giving Incentive

Tax Law: Tax Law & Policy eJournal
Roger Colinvaux
March 3, 2017


Leading tax reform proposals contemplate a charitable deduction claimed by just five percent of taxpayers. Such a limited deduction would fatally undermine the foundations of a giving incentive that has fostered an altruistic and pluralistic society through its broad-based participation and would seriously harm the charitable sector. Section 501(c)(3) would recede in importance as setting the standard for a public benefit organization. More gifts would go to private benefit and political organizations. The article argues that a charitable deduction for the few should be rejected. Instead, Congress should consider expanding the charitable giving incentive by extending it to more taxpayers in the form of a credit. A credit would remove long-standing inequities, allow for smarter charitable giving policy in the future, and improve transparency. If a charitable deduction for the few does become part of tax reform, however, changes should be made to ensure that deductible contributions are not abused but go to active public charities.