NEW YORK TIMES OP-ED: …The government does its own charitable giving, in the form of tax deductions. When an individual makes a donation to a qualifying organization, the federal government essentially pays a portion of that donation: A $1,000 donation from a donor in the highest tax bracket costs that donor only $604. The federal government kicks in the remaining $396 in the form of a reduction in taxes…
Nonprofit hospitals are among the largest recipients of charitable donations. Yet their activities are often indistinguishable from those of for-profit hospitals. Both receive compensation for the services they provide. No law requires nonprofit hospitals to provide charity care and, in fact, many nonprofit hospitals provide less charity care than their for-profit counterparts…
There is an easy legislative fix for each of these problems. Nonprofit hospitals could be required to provide charity care (an idea floated by Senator Charles E. Grassley, Republican of Iowa, and enacted by a few states). Golf courses could be made ineligible for the conservation easement deduction, as President Obama proposed in his latest budget. Most important, Congress could impose a seven-year payout obligation for donor-advised funds and forbid foundations to meet their payout requirements by giving to donor-advised funds… (more)
