Big Gifts, Tax Breaks and a Debate on Charity

An interesting article on philanthopy and the IRS.

By Stephanie Strom

Eli Broad, a billionaire businessman, has given away more than $650 million over the last five years, to Harvard and the Massachusetts Institute of Technology to establish a medical research institute, to the Los Angeles County Museum of Art and to programs to improve the administration of urban schools and public education.

The rich are giving more to charity than ever, but people like Mr. Broad are not the only ones footing the bill for such generosity. For every three dollars they give away, the federal government typically gives up a dollar or more in tax revenue, because of the charitable tax deduction and by not collecting estate taxes.

Read the full story from the 9/6/07 issue of the New York Times.

Additional Reading from the New York Times series on the "Age of Riches:"
Making Do, With $10 Million, August 5, 2007
The Richest of the Rich, Proud of a New Gilded Age, July 15, 2007