charitable

4Apr

By THEIRL1ADMIN01No Comments

HEALTH & WELLNESS

The Actions Of Government And Charitable Organizations Likely Kept Millions Of Americans Out Of Food Insecurity During The Pandemic

Craig Gundersen, Baylor University Despite the profound impact of the COVID-19 pandemic on the vulnerable in the United States, the percentage of Americans in food-insecure households held steady in 2020 at 10.5%, figures released on Sept. 8, 2021, show. Although unchanged from 2019, the new numbers are important for two main reasons. First, food insecurity – the state of being unable to adequately provide food for yourself or your family – has become one of the leading, if not the leading, indicator of well-being for vulnerable Americans. And with 38.3 million food-insecure Americans, the number of people affected is still high. Second, the fact that the overall rate did not increase despite a serious economic downturn underscores the importance of government intervention when it come...

An Economist Explains – What’s The Charitable Deduction?

Patrick Rooney, IUPUI The charitable deduction is a dollar-for-dollar reduction in taxable income that lowers what someone owes the Internal Revenue Service. Only donations to tax-exempt charities count. This giving incentive is available only for the 10% of American taxpayers who itemize their tax returns. Taxpayers who itemize can sum up certain expenses, such as the interest they pay to for a home mortgage, and then subtract that money from their taxable income. Here’s a hypothetical example: Clara Doe, a veterinarian, pays a 32% marginal tax rate on her US$200,000 income as a single filer. Because she itemizes, her $100 annual donation to a local food pantry costs her $68 after taxes. Uncle Sam essentially pays the rest by giving her a tax break. Most Americans instead use the stan...

What happens to charitable giving when the economy falters?

As the new coronavirus pandemic sends the economy into a tailspin, Patrick Rooney, an economist at the Indiana University Lilly Family School of Philanthropy, and Jon Bergdoll, a philanthropy statistician, explain what usually happens to giving during recessions. Do Americans give more to charity when more people are in need? No. Overall, for the last 64 years total giving has grown at an average annual rate of 3.3% adjusted for inflation. But the picture changes if you compare what’s happened when the economy has grown versus when it has contracted. During years with economic growth, average giving has increased by 4.7%. During the years marked by economic downturns, average giving has actually decreased by 0.5%. During economic downturns, more people are out of work and need a hand. But...