Monday, January 28, 2013
It has become a common pre-conceived notion that the amount of charitable gifts that people make correlate with the tax treatment for charitable donations. However, a survey U.S. Trust, a Bank of America trust company, stated that "tax matters are subordinate to the performance of stocks and the health of the overall economy." Ramsay Slugg, the managing director of U.S. Trust, said that the proof is in the number. He claimed that the number of people who pay taxes or itemize deductions is much lower than the number of Americans that give to charity each year. Furthermore, Slugg also stated that among those that do not pay taxes, many of them still give to charity. Slugg concluded that those who give simply want to give. That is not to say that there is nothing that does not coax donors into giving. The survey by U.S. Trust revealed that there are usually more gifts when investors feel that they are in a bullish economy. This survey only really applies to the wealthiest donors. The survey concluded that middle-income taxpayers are more likely to be affected by an increase in taxes on whether those donors will make gifts.
See Gil Weinrich, Charitable Giving Link To Stock Performance, LifeHealthPro, Jan. 25, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.