Sunday, December 31, 2017

Grand Social Experiment

We loaded up the car with used clothing, kitchen equipment, and unopened pet items and took them down to PARCA in Redwood City. (Like the NAACP, the Peninsula Association for Retarded Children and Adults now refers to itself by its acronym.)

Donations were piled up on the sidewalk on Friday; the four workers we saw were overwhelmed.

Charities always see a crush at year-end, but in December, 2017 the activity seems more frenetic, apparently due to the new tax law:
At the center of the rush is the doubling of the standard tax deduction to $12,000 for individuals and $24,000 for couples that will kick in Jan. 1. That increase could translate into fewer households itemizing their taxes, which could reduce the incentive to give to charity. Only taxpayers who itemize deductions can deduct charitable contributions from their taxable income.
First early-paid State taxes, now charitable donations. Unlike the one-time State-tax phenomenon in 2017 the tax reform effect on non-profit organizations is a grand social experiment that should tell us something about how much charitable giving over time is due to tax deductibility. (My guess: an initial fall-off in donations that will be recovered in a few years.)

No comments: