Charitable giving is a significant vehicle for providing needed goods and services around the world. In the United States, for example, charitable giving accounts for nearly two per cent of income. Moreover, the tax deduction for charitable giving is one of the oldest and most widely used tax policies in the US tax code. This article describes the known facts on charitable giving, how and why people give, and discusses the impacts of government policies on giving.
KeywordsAltruism Charitable giving Charitable organizations Crowding out Estate tax Free rider problem Fund-raising Permanent income hypothesis Philanthropy Public goods Self-interest Tax deductibility Two-stage least squares Warm glow
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