Paul L. Caron

Saturday, February 22, 2020

Newman: Reforming College Admissions Through The Charitable Deduction

Joel S. Newman (Wake Forest), Charitable Contributions and College Admissions: A Proposal, 165 Tax Notes 1453 (Dec. 2, 2019):

Payments of $20,000 or more to colleges should be denied charitable contribution deductions when (1) the child or grandchild of the payer has applied for admission and (2) the payment is made during the year in which the application is considered.

Surely, this proposal would lead to a decrease in the amount of charitable giving to educational institutions, but those considerations did not deter Congress from taxing such institutions’ endowments.19 The increase in fairness — both real and perceived — would far outweigh the cost.

Scholarship, Tax, Tax Scholarship | Permalink


Shouldn't the IRS simply attack these donations on grounds that they weren't given with "detached and disinterested generosity"? Seems it would be fairly easy to do.

Posted by: Anon | Feb 22, 2020 4:13:16 AM

Or, if the number of such admits exceeds a set percentage, strip the tax exemption of the entity altogether. Would a hospital that offered preferential admission to donors be tax-exempt? It shouldn’t be.

Posted by: Mike Livingston | Feb 23, 2020 3:44:52 AM