Tax Incentives for Charitable Giving: New Findings from the TCJA

Xiao Han, Daniel Hungerman and Mark Wilhelm

No 32737, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The Tax Cuts and Jobs Act eliminated federal charitable giving incentives for roughly 20 percent of US income-tax payers. We study the impact of this on giving. Basic theory and our empirical results suggest heterogeneous effects for taxpayers with different amounts of itemizable expenses. Overall, the reform decreased charitable giving by about $20 billion annually. Using a new method to adjust estimates for retimed giving, we find evidence of moderate intertemporal shifts from pre-announcement of the law. The permanent price elasticity of giving estimates range from .6 for the average donor to over 2 for those predicted to be most responsive to the reform.

JEL-codes: D64 H41 L31 (search for similar items in EconPapers)
Date: 2024-07
New Economics Papers: this item is included in nep-pbe and nep-pub
Note: PE
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