The Tax Cuts Are a Bad Deal for Charities

Philanthropic organizations have been on edge since Republicans rammed through the monumental tax bill: Will Americans give as generously now that the incentives have completely shifted? Recent research provides little hope for them.

The idea that charitable activity should receive preferential tax treatment dates back to medieval England, but Americans didn’t start seeing rewards until the 20th century. That’s when the government rolled out the first permanent income tax. Though modest at first, it skyrocketed after the U.S. entered World War I in 1917, eventually hitting the top income bracket at 77 percent.