Charitable Contributions Deduction
Categories: Tax, Trusts and Estates
Politicians who think that they should be the ones to choose which charities and foundations should receive donated funds are the ones who usually complain about the tax-free status of religious organizations. Ever wonder why?
One of the elements of the tax structure that has been a bedrock for religious and non-profit organizations, and has repeatedly demonstrated the generosity of the American people, is the Charitable Contributions Deduction. Firmly entrenched in the notion that private individuals and organizations are much more efficient and frugal with handling finances for maximum productivity, the U.S. tax code provides for individual taxpayers to deduct a percentage of their adjusted gross income to make contributions to accredited religious and non-profit organizations.
The work of the charitable contributions deduction is manifest in all kinds of institutions and foundations that provide hospitals, schools, soup kitchens, shelters, medical assistance, arts creation, and many other aspects of life and culture. The general maximum cumulative deduction one can take in a filing year is 50%, although there are caps on how much a specific charity may receive.
Politicians lament over all of those extra potential tax revenues that they can’t get their hands on. Look at the great job they’ve done with public schools, the post office, the VA hospital...[eye roll]