Claiming deductions for charitable acts

[DanteAlighieri]

I have, for as long as I can remember, had issues with the idea of claiming a deduction on one’s income tax for charitable donations. It strikes me as a bit hypocritical (forgive me if you have done this – I’m just explaining my position), as though one is seeking earthly reward for behavior that is required of us anyway, or seeking acknowledgement for one’s piety.

I’m sure there’s another side to this. I’d especially appreciate links to sources that discuss the morality of such activity.

Anyone have any thoughts on this?

Peace,
Dante

 

[abraham]

The theory behind the deduction is that the government is also contributing to the charity. For example, say that without the deduction you would be able to donate $100 to your church. With the income tax deduction, you may be able to donate, say $125, if the government reimburses you for the extra $25. So essentially, the government is also donating to the charity indirectly. If you’re able to take a deduction, then tithing should always be done on pre-tax income, since the cost to you is less than the actual donation. If you posted your tax forms or receipts publicly for all to see, then I could understand your concern about doing it just to seek a reward. But a lack of income taxes on the donated income is not in itself a reward, it’s more like the government will not penalize you for income you received and then gave away.

 

[teachccd]

Usually what one gets back is a very small percentage of what was initially donated. It is not unlawful to claim charitable contributions so if it seems hypocritical then just pay it forward to help another needy person. Many government programs are set up for the needy and you would extend this “reward” to someone else in need. Give and you shall receive. I try and remember this.

There are many paid ministries in many parishes. Are all of those folks hypocrites also? Shouldn’t they just donate their time to the Lord. Many priests are compensated while being housed and cared for. No, my friend. I hope that you find your links but my only link is that God does thank us and we should appreciate that. If one is dishonest regarding those contributions then there arises another issue…God Bless…teachccd

 

[VociMike]

The purpose of the tax deduction is to encourage charity. Taking the tax deduction is just a case of rendering unto Cesaer what is Cesaer’s. Not how we usually think of it, but true nonetheless.

If you want, just estimate the amount of tax you’ll save with the deduction and donate that as well. And then estimate the amount you’ll save with that deduction, and donate that as well, and then estimate…

 

[DanteAlighieri]

Thanks for the responses, guys – especially VociMike!

Peace,
Dante

 

[Texas_Roofer]

I think there is a misunderstanding here. When a person in the USA gives $1,000 to the Church (say $20 per week) the government collected roughly $400- $700 in taxes before the giving. So the person had $1,500 in income of which about $500* was sent to the government and $1,000 to the church. The government tax deduction is designed to reduce the government taxation of charitable gifts. The objective is to allow the private sector to teach religion, morals, improve human life, contribute to children’s needs, etc.

Consider someone wins ten million bucks and offers to keep $1 million and give 9 million to the Church, but the government says wait a minute the taxes are 4 million so if you do that you have to give us your million plus 3 million more!

‘ * Includes FDIC(both sides) , Medicaid(both sides), federal tax withholding, state tax withholding, workman’s compensation insurance. Plus tax run up, which is the increase in taxation because reported income is higher when the gift is included.

 

[CuriousInIL]

Another reason to do away with income tax and have a national sales tax instead.

 

[Mirror_Mirror]

Just do not itemize your deductions, take the standard deduction or if you do itemize do not claim the charitable contributions.

Just a thought.

 

[rwoehmke]

What is good about it is that you get to decide where to spread your charitable largess. Other wise the government keeps some and they decide where to fritter it away, like on a 5 year war in Iraq or on nasty bombs for Israel.

 

[hilde_the_dog]

Seriously the only goofier (not a real word) thread was about the fortune cookies. Vocimike is right. Its legal. And with the deduction you should be able to give a little more. And I’m a lobbyist in DC so I know how the government would like to spend your money.

 

[otjm]

Just do not itemize your deductions, take the standard deduction or if you do itemize do not claim the charitable contributions.

Just a thought.

No, the standard deduction presumes that you have given to charity, but not enough to trigger a smaller tax bill.

 

[Jay2]

Take the deduction! The Gov’t takes 28% of your pay off the top without any remorse… why feel bad about getting some back?

 

[Firefox]

The purpose of the tax deduction is to encourage charity. Taking the tax deduction is just a case of rendering unto Cesaer what is Cesaer’s. Not how we usually think of it, but true nonetheless.

If you want, just estimate the amount of tax you’ll save with the deduction and donate that as well. And then estimate the amount you’ll save with that deduction, and donate that as well, and then estimate…

Heh, that’s a power thing. According to the calculus I just learned over the summer, that is a convergent power series, so that’ll go from *(a = initial donation, x = rate of return)

a + a(x) + a(x)^2…

to…lim n->infinity a(1 - x^n)/(1 - x) or a/(1 - x). Math is amazing stuff.

 

[DanteAlighieri]

Heh, that’s a power thing. According to the calculus I just learned over the summer, that is a convergent power series, so that’ll go from *(a = initial donation, x = rate of return)

a + a(x) + a(x)^2…

to…lim n->infinity a(1 - x^n)/(1 - x) or a/(1 - x). Math is amazing stuff.

Not to an English teacher like me, to whom it seems you just mashed the keyboard with your foot.

Peace,
Dante

 

[puzzleannie]

If I pay attention to the tax laws when planning charitable giving (which also includes estate planning) the net result is the charity will get more usable funds and material, so it only makes sense to know and use those tax laws properly.

For instance, as a tithe on inherited property, we donated stock to a charity. If we had sold the stock, paid capital gains tax (immense in this case) then donated the proceeds, the charity would have received a fraction of the money. Because of the tax benefit of the donation, we were also able to give more to other charities in that year.

 

[DanteAlighieri]

Take the deduction! The Gov’t takes 28% of your pay off the top without any remorse… why feel bad about getting some back?

The government takes what it takes because the law says it can, and I am obligated to obey the law.

I am also obligated to be charitable, but as a disciple of Christ, I desire to do that anyway.

My “feeling bad” has nothing to do with “getting some back” from the government. It has everything to do with wanting to be a proper disciple of Christ.

Furthermore, the old cliche “Two wrongs don’t make a right” is a cliche for a reason: it is true and bears repeating.

Peace,
Dante

 

[bilop]

The government takes what it takes because the law says it can, and I am obligated to obey the law.

I am also obligated to be charitable, but as a disciple of Christ, I desire to do that anyway.

My “feeling bad” has nothing to do with “getting some back” from the government. It has everything to do with wanting to be a proper disciple of Christ.

Furthermore, the old cliche “Two wrongs don’t make a right” is a cliche for a reason: it is true and bears repeating.

Peace,
Dante

How can taking a legitimate tax deduction be a wrong?

God Bless

 

[estesbob]

Usually what one gets back is a very small percentage of what was initially donated. It is not unlawful to claim charitable contributions so if it seems hypocritical then just pay it forward to help another needy person. Many government programs are set up for the needy and you would extend this “reward” to someone else in need. Give and you shall receive. I try and remember this.

It’s really easy to determine how much a charitable contribution save you in taxes. Take the amount of taxes you saved by contributing to charity and donate that also. That makes it a win-win situation