Skip to main content

Charity Donors Say They’d Keep Giving If Tax Deduction Went Away, But They’re Not So Sure About You

A new study, released yesterday, finds that Americans would keep giving, even if the tax deduction for charitable gifts went away. However, they’re certain that charitable donations would decline as a result.

As Congress and the President mull over how to make up ground against the burgeoning U.S. deficit, one idea that frequently comes up is eliminating tax deductibility for charitable donations.

The demographically representative study found that most Americans think that would lead to fewer donations to charitable causes. The survey, from Grey Matter Research of Phoenix, found:
  • 30% feel there would be no real change in giving in the U.S.
  • Six percent believe charitable donations would rise.
  • “Almost two-thirds of Americans say charitable giving in the U.S. would decrease, including 29% who believe it would decrease a little, and 36% who believe it would decrease a lot,” the survey found.
Even though the issue has become a kind of political football (See picture above), how Americans feel about the issue varies little between Independents, Republicans, and Democrats.

“Sixty-three percent of Republicans, 68% of independents, and 61% of Democrats believe charitable giving in this country will decrease if contributions are no longer tax deductible. Similarly, this is the perspective among 62% of those who identify themselves as politically conservative, 62% of self-described moderates, and 72% of political liberals. Whether they feel giving will decrease a lot or a little also shows no variation by party or perspective.”

How then to reconcile the seemingly contradictory finding that those surveyed think their contributions would remain consistent, while they think other Americans would give markedly less?

Says Ron Sellers, president of Grey Matter Research, “It’s fascinating that so many people believe their own giving will remain stable even without the deduction, but that other people will give less. Obviously, both perspectives can’t be right for everyone. People are either being unnecessarily pessimistic about what other donors will do, or unreasonably optimistic about their own behavior.”

I suspect the pessimists are right about their peers and wrong about themselves.

Across the globe, the countries that allow a tax deduction for charitable donations have a more robust and healthy Third Sector than the countries that don’t.

Tax deductibility would have a severe effect on the charities in the United States if it was taken away or limited.

Comments

Very interesting post.

As charity is a cumulative and collaborative process, Most charity donors will keep giving even Tax deduction went away and there will be no major change in Charitable Giving

Popular posts from this blog

Profile of Cause Marketing Veteran Joe Lake

Blogger's Note: What follows is a profile and interview I wrote of Children's Miracle Network co-founder Joe Lake, who was recently installed as the CEO of the Starfish Television Network. This originally appeared in the Salt Lake Enterprise on Monday, May 11.

Lining the walls of the office of Joe Lake, the new CEO of the Starfish Television Network, a 501(c) (3) public charity and television network founded in 2006 and headquartered in Midvale, are pictures of the many celebrities he has worked with.

There are pictures of Joe with Goldie Hawn, Sidney Poitier, Jeff Bridges, Bill and Hillary Clinton, Rob Lowe and Walter Cronkite, and affectionately-autographed publicity stills from Bob Hope and Rich Little.

It’s something you’d expect in the office of a Hollywood agent, or at a celebrity hangout in Manhattan, or Chicago or Vegas. But the Starfish Television Network, whose mission is to tell the stories of nation’s nonprofits in a way that educates, entertains and inspires its audi…

Unconventional Metrics of Cause Marketing Power

The printed edition of Fortune Magazine runs a regular feature called ‘My Metric’ wherein business leaders identify informal but telling measures of current economic activity.

In the January 17, 2011 Michael Glimcher, CEO of Glimcher Realty Trust cited as his metric an increased number of black cars on the streets of New York City as a sign of the U.S. economy’s (still pending?) resurgence.

That got me thinking, what unconventional metrics evidence the power of certain cause marketing efforts?

One immediately leapt to mind, although only General Mills, which makes Yoplait yogurt in the U.S., can measure it.

The Yoplait lid at left... which I purchased in December 2010... can NOT be redeemed for a $0.10 donation to Susan G. Komen for the Cure. Instead it promotes Yoplait’s sponsorship of Komen’s Race for the Cure events, which are numerous.

But I’d bet you a six-pack of Yoplait Greek Honey Vanilla that people nonetheless still send in some number of the lids above in an attempt to redeem th…

Top Eight Cause-Related Marketing Campaigns of 2007

Yeah, You Read it Right. It's a Top 8 List.

More cause-related marketing campaigns are unveiled every day across the world than I review in a year at the cause-related marketing blog. And, frankly, I don’t see very many campaigns from outside North America. So I won’t pretend that my annual list of the top cause-related marketing campaigns is exhaustive.

But, like any other self-respecting blogger, I won’t let my superficial purview stop me from drawing my own tortured conclusions!

So… cue the drumroll (and the dismissive snickers)… without further ado, here is my list of the eight best cause-related marketing campaigns of 2007.

My list of the worst cause-related marketing campaigns of 2007 follows on Thursday.


Chilis and St. Jude Children’s Research Hospital
I was delighted by the scope of Chilis’ campaign for St. Jude Children’s Research Hospital. As you walked in you saw the servers adorned in black co-branded shirts. Other elements included message points on the Chilis beverage coas…