Paul L. Caron

Friday, January 22, 2021

Colinvaux: How The Biden Administration Can Fix Problematic Charitable Giving Laws

Chronical of Philanthropy op-ed:  We Need to Fix Problematic Charitable Giving Laws. The Biden Administration Can Help., by Roger Colinvaux (Catholic):

The recent exceptional generosity of philanthropists such as MacKenzie Scott deserves our applause. But we shouldn’t let their worthy actions blind us to the bigger problems facing philanthropy today: namely, that the laws promoting charitable giving no longer effectively serve their key purposes.

Here’s why: These laws offer giving incentives to too few donors, unfairly favoring wealthy taxpayers and degrading civil society in the process; they encourage donors to delay their giving, potentially for generations, and they increasingly fail to prevent fraud and abuse in charitable organizations, undermining trust.

Fortunately, all these problems have solutions ripe for pursuit by the incoming Biden administration. Here is a road map of where we are now — and the changes needed to move our tax policies in a better direction. ...

With a slim Democratic majority in both chambers of Congress, the Biden administration should demand tax-code reforms that encourage outright charitable giving by all Americans and restore trust through better oversight of nonprofit organizations. Such steps will go a long way toward revitalizing the nonprofit world and opening the door to a wide and diverse set of donors.

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