Report: Wealthy Give Less to Religious Groups, More Sensitive to Tax Savings

A report by the Congressional Budget Office (CBO) finds that proposed changes to the tax code could reduce charitable contributions. However, the CBO does not expect religious organizations to be affected because religious donors are less sensitive to the tax benefits of contributions. Instead, it is the charities favored by the rich—the arts, education, and healthcare—that are more likely to see lowered donations.

Congress is currently considering possible changes to the current tax code, which allows individuals to deduct their charitable contributions from their taxable income. President Obama has proposed a reduction in how much contributions would those making more than $250,000 a year. Rather than receiving a tax savings of 33 or 35 percent (the tax rate for the higher-income brackets), these income earners would receive a 28 percent tax savings.

This type of reduction is most likely to affect donations to large institutions such as colleges, hospitals, and foundations, not churches ...

Subscriber access only You have reached the end of this Article Preview
To continue reading, subscribe now. Subscribers have full digital access.
Already a CT subscriber? for full digital access.
October

Support our work

Subscribe to CT and get one year free.
Tags:
Posted by:

Read These Next

close
hide this
Access The Archives

Member-Only Access

Subscribe to Christianity Today to continue reading this article from CT's digital archives.

Subscribe

Already a subscriber? to continue reading.