Under U.S. federal and state tax laws, qualifying non–profit organizations receive several kinds of tax benefits. However, the benefits come with compliance costs, as eligible organizations must first apply for them and then file the annual reports necessary to maintain them. We use a national...

The current U.S. income tax system subsidizes contributions to charities by allowing individual taxpayers to itemize and deduct contributions from taxable income. In effect, taxpayers can receive a rebate from the government based on the contributions they make to charitable organizations. Under...