Study Shows How Changes to the Tax Code Could Affect Giving

A new Congressional Budget Office study looks into how changes in the way donors calculate their tax deductions for charitable donations would affect giving — and the federal budget.

The study examines options such as offering deductions to those who don’t itemize their tax returns, converting tax deductions for gifts into tax credits, and offering tax breaks only to people who donate a minimum amount of money.

It found, for example, that if all taxpayers had been allowed to claim deductions for charitable contributions in 2006, rather than just those who itemized expenses, charities would've received $2-billion more in gifts.