What would happen to donations to charitable organizations if there was a flat tax?
July 12, 2009 by Fundraising and Fundraiser Ideas
Filed under Charities, Donations & Sponsorships
Can you answer Nine and a Half’s question about Fundraising?:
My answer was: Donations would become less frequent, esp. large donations.
My answer was: Donations would become less frequent, esp. large donations.
Is that right?
High School Sports Fundraisers
Fundraising Feedback: It is impossible to predict.
Fundraising Feedback: well I can see your logic. Donations tend to be a company’s way of allocating tax dollars.
But certainly not everyone uses that as their sole reason for donating.
I’ve encountered people donating money to causes that aren’t even tax deductible.
I think yes, I agree that they would dim.
Fundraising Feedback: Given that a flat tax would have to be levied at about 25% with no exemptions, deductions or credits whatsoever there would be no tax deduction for them. That might have some impact on donations, though most folks give for the good that it does, not for the tax break. I’d venture to day that fully half of all donations to 501(c)(3) charities are never deducted because the donor takes the standard deduction.