While doing my 2009 taxes, the portion for charitable giving came up on my tax software. Now I don’t contributed all that much to non-profits, and too be honest I probably should contribute more. I know it is perfectly legal, but somehow it does not feel right. Lots of people intentionally give large donations near the end of the year to reduce their tax burdens, but I still don’t know how I feel about it.
I feel like Charitable giving should be a selfless act, and I should not be thinking about the tax benefit I will get at the end of the year, rather that I am helping those less fortunate then myself. Maybe I will simply donate the money I saved on my taxes back into a charity.
Having Charitable giving being tax deductable is actually a way that the government uses tax policy to encourage (or discourage) a certain type of behavior. They think that if they give people a break on their taxes for being a good person, then that will encourage more giving, and be a larger benefit to society.
I guess I will only deduct the portion that I contribute through work because that is deducted out of my paycheck and I know exactly how much that is. I will ignore my church tithes, and boy scout popcorn. It still feels strange though getting money for giving money away.
Do you deduct your charitable giving?
This is not flower girl.
There is nothing sacred about deductability. The government is always tinkering, incenting this or that with tax breaks, credits, subsidies, etc. Most over time prove to be counter-productive.
On the other hand, deducting charitable giving has been around and unchanged for as long as I can remember. Generally is seems to work and encourage more giving than otherwise might occur. It generally is not gamed and I would guess those charity $$ are used far more efficiently than direct government programs.
I’d rather end the myriad of other deductions and subsidies before attacking this one.
As for the moral case and deductability, it does not impact whether or not I give, but it does influence the amount I give, and that is in the upward direction. On balance, I think that is a good thing.
Cheers,
PS- I would gladly give it up, if all the others were eliminated at the same time.