Tax Policy Proposals Would Reduce Charitable Giving, New Study Finds

Tax policy changes proposed by Congress and the Administration would reduce charitable giving by up to $13.1 billion, new research conducted by the Indiana University Lilly Family School of Philanthropy indicates.

Researchers also found that adding a charitable deduction for non-itemizing taxpayers to the policy proposals would likely more than offset the loss in charitable giving from the proposals and generate up to $4.8 billion in additional charitable giving.

The study was commissioned by Independent Sector, a national membership organization of nonprofits, foundations and corporations, with funding from Leadership 18, an organization comprising national human service nonprofits.

“When talking about changes in tax policy, it is important that the debate is informed by research. This study provides important information about the expected effects of the proposed tax policy changes and the extension of the charitable deduction to non-itemizers,” said Patrick M. Rooney, associate dean for academic affairs and research at the Indiana University Lilly Family School of Philanthropy.

The complete report, Tax Policy and Charitable Giving Results, is available for download.