Master's Student of
Welcome to Research Friday! As part of a continuing weekly series, each Friday we invite a nonprofit scholar, student, or professional to highlight current research reports or studies and discuss how they can inform and improve day-to-day nonprofit practice.
Public funding for social programs is in a state of uncertainty due to our country's economic strain. While government-run programs are in direct risk of losing funding, nonprofit funding is precariously reliant on both a legislature driven to increase federal revenue, and philanthropists who expect tax relief for donating to charities. One proposed solution to increase federal revenue is to reduce the charitable deduction for high-income philanthropists. Many philanthropists and scholars oppose this idea, citing concerns about lower overall giving.
This policy brief examines how a charitable deduction cap of 28% of for high-income earners will affect philanthropic giving in the context of upcoming policy changes, current donor demographics, and the breadth and scope of nonprofit services.