Charitable Tax Reform For the 21st Century

164 Tax Notes 1867 (2019)

10 Pages Posted: 3 Oct 2019

See all articles by Roger Colinvaux

Roger Colinvaux

Catholic University of America (CUA) - Columbus School of Law

Ray D. Madoff

Boston College - Law School

Date Written: September 16, 2019

Abstract

The article identifies two goals of the charitable giving tax incentives: promoting actual charitable work and fostering a strong culture of charitable giving with broad participation. The recent increase to the standard deduction and the rise of donor-advised funds compromise both goals. The article outlines reform proposals to bolster the charitable sector, including expanding the giving incentive to all taxpayers in the form of a credit (subject to a giving floor), allowing some tax benefits to DAF donors upon contribution but delaying the income tax deduction until DAF funds are released from advisory privileges, closing loopholes that enable foundations and donors to skirt long-standing legal requirement, and modifying incentives to foundations to foster more spending.

Keywords: charitable giving incentives, dafs, donor advised funds, charitable credit, foundation payout, public support test

JEL Classification: H2, H4, H5, K34, L3, L38

Suggested Citation

Colinvaux, Roger and Madoff, Ray D., Charitable Tax Reform For the 21st Century (September 16, 2019). 164 Tax Notes 1867 (2019). Available at SSRN: https://ssrn.com/abstract=3462163

Roger Colinvaux (Contact Author)

Catholic University of America (CUA) - Columbus School of Law ( email )

3600 John McCormack Rd., NE
Washington, DC 20064
United States

Ray D. Madoff

Boston College - Law School ( email )

885 Centre Street
Newton, MA 02459-1163
United States
617-552-0926 (Phone)
617-552-2615 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
83
Abstract Views
229
rank
301,088
PlumX Metrics