Eliminating or reducing tax deductions for charitable donations is among the actions Congress is considering to help avoid the so-called "fiscal cliff."
Huseyin YildirimAssociate professor of economics, Duke Universityyildirh@econ.duke.eduhttp://econ.duke.edu/people?Gurl=%2Faas%2FEconomics&Uil=yildirh&subpage=...'s research focus includes philanthropy and charitable giving.Quote:"To avoid heading over the 'fiscal cliff' on Jan. 1, some politicians are proposing that we limit income tax deductions for charitable donations. Empirical evidence suggests that this will discourage giving, especially by wealthy Americans, who currently benefit the most from the deductions."All charities will lose revenue, but I expect that educational and health organizations will be hit the hardest, while religious and social service organizations will be affected the least, as their donor base is skewed toward lower-income households who are less likely to enjoy tax credits to begin with."