The purpose of our nation’s charitable tax rules is to provide a tax benefit to ensure more resources are going toward the public good and working charities. However, more than $1 trillion sits on the sidelines in private foundations and donor-advised funds (DAFs) – vehicles that provide upfront tax benefits and no assurances of these funds ever reaching charities. Additionally, approximately 90% of Americans continue to give to their churches, local food banks, and community groups while receiving little tax incentives to make charitable gifts; yet for the wealthiest Americans, charitable giving has become an exit ramp from the federal tax system.
Clearly, the current rules are no longer meeting their purpose, contrary to the myths that say otherwise. Read our Myth v. Fact where we set the facts straight about charitable giving and our proposals.
Download the Myth v. Fact here.