The Power of Warm Glow

Abstract:     
Professor Brian Galle’s Keep Charity Charitable is a thoughtful contribution to the ongoing conversation about the proper tax treatment of charitable organizations. I largely agree with Galle’s arguments, but I would like to offer two criticisms of his positions: first, Galle overstates the problem posed by for-profit firms offering charitable services; and second, he understates the power of “warm glow” in the nonprofit organization.

Number of Pages in PDF File: 5

Keywords: Tax Law, Non-Profit Entities, Charitable Services, 501(c)(3), Tax-Exempt Entities, Charitable Deduction, Keep Charity Charitable

JEL Classification: K22, K34

Accepted Paper Series