Letters to the Editor: The 2017 tax cut slowed charitable giving. Here’s how Congress can help
To the editor: Your important editorial on the decline in Americans’ charitable giving in recent years does not mention the Tax Cuts and Jobs Act of 2017, one of the biggest reasons for the decline.
While the law retained the deduction for charitable giving, it dramatically reduced the incentive to do so for all but the wealthiest by roughly doubling the standard deduction for individuals and married couples filing jointly. This is because charitable contributions can only be deducted by taxpayers who itemize their deductions.
Predictably, after the law went into effect in 2018, it resulted in a 1.7% drop in charitable contributions the following year. Not surprisingly, small individual contributions suffered the most. Only the highest income earners, who are more likely to itemize to begin with, maintained a strong benefit from making charitable donations.
So far, Congress’ attempts at a solution have been poorly designed and ineffective. It needs to come to the aid of nonprofits, which are suffering from this drop in contributions, by re-incentivizing charitable giving. Short of rolling back the increase in the standard deduction, the best solution would be some form of a universal charitable deduction.
As someone heavily involved in the arts nonprofit sector, I believe this would greatly improve our ability to attract and retain donors, and to help those we serve.
Michael Stanley, North Hollywood
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To the editor: I read your editorial at a time when I just had contacted a nonprofit asking to be removed from its mailing and phone lists. I am a senior citizen who likes to give to certain organizations, but some of them can get greedy.
Recently I committed to giving a dollar amount, so I sent a check. Within a week or so, that organization started asking for more. It acknowledged my original commitment, but its mailer made a point of saying it would be nice if I would give more.
Like a lot of Americans, I am deluged by organizations asking for donations. Unfortunately, I now treat most of their mailers as junk. I feel confident I am not alone.
I will not stop giving, but organizations should be more considerate to their givers.
Diane Hunn, Camarillo
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To the editor: I believe there is a direct correlation between the decline in giving and the decline in religion in this country. The second-most common religious affiliation among young people in the U.S. today is “none.”
This also matches with studies showing religious people are more likely to give than nonreligious people.
John Pate, Santa Barbara
