Why People Give—Tax Incentives?
There have been several articles over the past three or four weeks related to charities losing “opportunities” from the 1.7 trillion-dollar omnibus bill passed by Congress in December of 2022. The NonProfit Times and the Chronicle of Philanthropy both wrote about the bill, and its effect on nonprofits, on the same day using much of the same language.
Let me be clear. What both publications articulated in terms of increasing charitable opportunities was accurate and fair. I'll address those details in another blog. What I found disconcerting is the language used by both the reporters and the nonprofit leaders who were quoted in the articles. They made it seem as if the only reason people give to charity, to help others, is for tax purposes. I'd be a fool to say there aren't some individuals who do use tax implications as a part of their equation, but the articles don't even mention the more important rationales for giving.
I've talked about it several times before, but Nathan Chappell and Brian Crimens’ book, “The Generosity Crisis” talks about this very issue. In the book, they articulate the need for “radical connections” where we know our donors and our community at a very intimate level. And, if we do that and can talk about the outcomes our nonprofits are solving in our community, taxes aren't that important. What the articles are talking about are transactional issues. What's missed are the transformational opportunities we actually can control in our industry to better our relationships with those who are the most interested in the things we do.
I studied a lot of tax law in law school. I understand its implications. I agree there is a social good that comes from the government incentivizing tax deductions for charitable giving. I just found it incredibly disappointing that nowhere was there a conversation about what to do with the people we're asking to support our organizations. Another piece of evidence about how transactional we've become in philanthropy, most of the time to our detriment.
