This Congressional testimony has two parts. Part I discusses the implications that choice of rationale for the charitable deduction has on reform options such as credits, caps, a nonitemizer deduction, scope of eligible donees, and deducting unrealized appreciation. Part II concerns the...

Congressional codification of section 527 in 1975 largely reflected the IRS's treatment of political organizations at the time, including that contribution income was not taxable income, and did not provide a significant tax subsidy. In 2000, Congress amended section 527 to impose reporting...

There are two principal rationales for the charitable deduction. Depending upon choice of rationale, some tax reform changes are suggested and others are not. A base measurement rationale suggests eliminating the deduction for unrealized appreciation, keeping the benefit as a deduction and not a...

The Congressional testimony provides a framework for thinking about the role of the charitable deduction in the federal income tax. As changes to the deduction are weighed by policymakers, it is important to consider: (1) the existing characteristics and policy tenets of the charitable...