Skip to main content
  • Experts
  • Events
  • Briefing Book
  • Resources
  • About
  • Contact
  • Support
  • Fiscal Facts
Twitter
Facebook
Logo Site
  • Topics
    • Individual Taxes
    • Business Taxes
    • Federal Budget and Economy
    • State and Local Issues
    • Campaigns, Proposals, and Reforms
  • TaxVox Blog
  • Research & Commentary
  • Laws & Proposals
  • Model Estimates
  • Statistics
  • Features
Brief

Designing an Effective and More Universal Charitable Deduction

C. Eugene Steuerle, Robert McClelland, Nikhita Airi, Chenxi Lu, Aravind Boddupalli
March 17, 2021
Download PDFPrint
Share

Primary tasks

  • Overview(active tab)
  • Full Report
  • Media Mentions

Abstract

Because of the small share of the population currently eligible for itemized tax deductions for charitable giving, many charities have argued that a more universal charitable deduction or tax credit should exist. A more universal subsidy could (but would not necessarily) increase significantly the resources made available for charitable purposes and would symbolize the nation’s commitment to giving as a strong societal goal. In this brief, we show that whatever the revenue cost associated with a more universal deduction, policymakers should consider how to maximize the amount of goods and services that can be provided efficiently and equitably to charitable recipients for the subsidies it provides. Setting a floor contribution level above which some tax subsidy would be provided is a primary way of achieving that objective. Other approaches, such as allowing deductions up to the time of tax return filing (as with deductions for contributions to individual retirement accounts) and strengthened reporting, can also increase the amount of resources flowing through charities to beneficiaries for each dollar of subsidy provided.

Research Area

Individual Taxes Federal Budget and Economy
To reuse content from the Tax Policy Center, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.

Meet the Experts

  • C. Eugene Steuerle
    Institute Fellow and Richard B. Fisher Chair
  • Robert McClelland
    Senior Fellow
  • Nikhita Airi
    Research Analyst
  • Chenxi Lu
    Research Associate
  • Aravind Boddupalli
    Research Associate
Research report

New Evidence on The Effect of The TCJA On the Housing Market

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
  • Donate Today
  • Topics
  • TaxVox Blog
  • Research & Commentary
  • Laws & Proposals
  • Model Estimates
  • Statistics
  • Privacy Policy
  • Newsletters
Twitter
Facebook
  • © Urban Institute, Brookings Institution, and individual authors, 2022.