Why are donations to charity tax deductible?

Question

Why are donations to charity tax deductible?

Answer 1

to allow insincere people or corporations the chance to donate.

Answer 2

Much of the tax code comes about as a means of the government encouraging certain behaviors.  By the way, charitable donations are only deductible if the items donated are in at least good condition and a receipt is obtained by a qualified charitable organization documenting the donation.  Furthermore, in order to take advantage of this deduction, you must be able to itemize your deductions in lieu of using the standard deduction allowed, based on the filing status used.  The deduction is futher limited in that it cannot be more more than a certain percentage of the taxpayers' AGI, depending upon the type of charitable organization the donation is made to.

Answer 3

1 )   Because this money is given to a cause which would need to be funded, wholly or in part, by the Government. Charity minimises this public expenditure, so it is only fair that the Government does not tax this income.

2 )  The money spent on charity is not spent on the doner. It is given away so it is virtually money that he does not use for his own benefit. He gives it away, so it cannot, in justice be counted as part of his income. It should be tax free.

3) The Government keeps a tight rein on charity. Only those approved can qualify for a doner tax exemption.

Answer 4

Because congress passed a law saying that they are.  The purpose is to encourage people to donate to charity.  Many charities provide types of support to people that otherwise the government would probably end up providing.  At least that's the theory.....

Answer 5

To give charities an income for the good of its needs say a hospice,