Brief Using State-Level Data To Understand How the Tax Cuts and Jobs Act Affected Charitable Contributions
Robert McClelland
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The 2017 Tax Cuts and Jobs Act (TCJA) changed tax incentives for charitable contributions. Several provisions—most importantly, an increase in the standard deduction and limits on itemized deductions—led to a large reduction in the number of taxpayers who itemize on their federal tax returns. Using available data, we find that charitable contributions fell by much less than the use of federal deductions alone suggest. This information can help analysts better understand how charitable contributions respond to tax incentives and inform future charitable deduction reforms.

Research and Evidence Tax and Income Supports Research to Action Nonprofits and Philanthropy
Expertise Nonprofits and Philanthropy Taxes and the Economy
Tags Nonprofit data and statistics Charitable giving Quantitative data analysis