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December 24 2019

Two Truths And A Lie: Charitable Giving

by Charlotte Whelan

Everyone loves the party game/icebreaker “two truths and a lie.” 

At this time of the year, many people open their wallets to charitable causes. Not only are Americans the most charitable people on Earth, private charitable giving is part of the American fabric as an exercise of our First Amendment rights. Can you identify which of the following is NOT true about charitable giving? 

 

  1. Charitable giving isn’t just about money but affects lives and changes society as well. 

  2. Forced public disclosure of donor lists will discourage broad-based civic participation. 

  3. Tax policy doesn’t affect charitable giving. 

 

A. TRUE

While many people only think about the amount of money given to one cause or another in a given year, charitable giving should be measured by the impact it makes. In the field of medicine alone, private philanthropy has led to breakthrough advances including the polio vaccine, kidney transplants and dialysis, insulin, and successes in the fight against cancer. 

Charitable giving has led to similar advancements in education, the preservation of nature, public policy, and culture, helping people to protect the beauty of the earth that we enjoy while also refocusing our efforts on people. Work by educational organizations such as IWF helps to influence policymakers and effect change in our cities, states, and nation. 

B. TRUE

The notion of releasing donor information has gained support recently, especially as public opinion has become more polarized on different issues. But forced public disclosure of donor lists will open a Pandora’s box, only furthering the political segregation in our nation. 

Some donors may wish for their gifts to be publicly known, and there are many ways to ensure that. But denying anonymity to all donors will discourage many donors, exposing them to potential harassment, retaliation, unwanted solicitations, boycotting, and physical harm. Beyond the backlash that may follow a donation, others may wish to remain anonymous for religious reasons. Without anonymity, the scourge of a true democracy may fall upon us, with the minority being overpowered by the majority. In the US, however, we have protected donor privacy and free speech through our Constitution, as affirmed by the Supreme Court in NAACP v. Alabama. 

As abhorrent as some unpopular opinions may be, we must champion this right to protect future movements whose importance we may not recognize for some time. Imagine if women’s suffrage had been silenced through donor disclosure.

C. FALSE

Tax policy can have wide-reaching effects on private philanthropy. The charitable deduction encourages giving. Low tax rates make the economy strong and increases the amount of money Americans can afford to donate. These policies can help to cement the bond between the private and public sector without conflating the two. 

Some individuals are motivated by religion or philanthropy and will give regardless of the tax benefits. But this does not mean that policymakers should take away tax benefits. Without the support of those who are at least partially motivated by the tax benefits, charities and non-profits will suffer. 

As many of us reflect upon the past year during this holiday season, we should remember those that came before us and helped to form our nation’s values and culture. Without a prosperous nation molded by an opportunity economy, we could not share this prosperity with others and the causes that we believe in. 

Click here to read more about charitable giving in our December policy focus. 





Independent Women's Forum is an educational 501(c)(3) dedicated to developing and advancing policies that aren’t just well intended, but actually enhance people’s freedom, choices, and opportunities. IWF is the sister organization of the Independent Women’s Voice.​
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