Charitable Deduction Turns 100
100 years ago this month, the federal tax deduction for charitable donations became a part of U.S. philanthropy. Sadly, tax reform proposals currently under consideration in Washington threaten what has become status quo during the past century.
At stake is the number of people who would be eligible to take itemized deductions. Certain itemizations may no longer be available. In addition, the standard deduction is expected to go up significantly. According to some economists who have analyzed plans discussed so far, as few as five to ten percent of Americans could be taking the deduction in the future. Without this incentive to participate in charitable giving, they anticipate that tens of millions less will go to charity each year.