Part four of a five-part series American philanthropy is under threat. The current declines in municipal real estate alone might suggest to lawmakers to impose new taxes on endowments as a way of balancing depleted public budgets. But what a shortsighted idea! Private foundations are . . . private entities. And foundation endowments are private property held for the public benefit according to the donor’s intent.
Tax deductions for charitable donations were wisely established to provide an incentive to sustain citizen-to-citizen generosity. Deductible contributions do not, however, make foundation endowments any more “public” than are the homes of citizens who deduct their mortgage-interest payments from their taxes. The nation works on a rule of law.
