Debate about the House’s “big, beautiful” tax bill has focused on big-ticket entitlement items such as Medicaid and food stamps. But the sprawling legislation includes consequential changes affecting one of America’s most distinctive characteristics: charitable giving.
The United States has long been the world leader in charitable giving as a percentage of GDP, but, more recently, individual giving has stalled, as overall philanthropy has kept pace because of foundation and corporate giving. The House bill includes a strong push in the other direction — in favor of what can be called the democratization of charity by restoring a tax incentive for those who do not itemize their tax returns. It does so, however, at the possible expense of foundation philanthropy — a change that will meet pushback but nonetheless merits serious consideration in the form endorsed by the House, though the Senate could still improve on it.
