November 30, 2005
WebCPA -- 'The Most Wonderful Time of the Year'
"According to "Charities and Public Goods: The Case for Reforming the Federal Income Tax Deduction for Charitable Gifts," few charities designated under the tax code actually provide services that wouldn't otherwise be supplied in the marketplace without a tax subsidy.
"Since the early 1900s, the Internal Revenue Code has defined a wide range of groups as charities, but the report notes that charities defined in the economic sense -- those needing to be subsidized due to the risk of elimination through market failure - aren't receiving the bulk of tax deduction benefits."
