The Impact of the Tax Cuts and Jobs Act on Charitable Giving for Higher Education

• In Event: AERA Roundtable Session 11
  In Roundtable Session: Policy, Tuition, and Matters of Higher Education Finance

Abstract

Though current studies on charitable giving in higher education have examined individual attributes and institutional characteristics to raise donation amounts and expand potential donor lists, little attention has been paid to tax policies, which could form charitable behaviors and cultivate a culture of philanthropy. This study examines the trend of charitable donations at U.S. higher education institutions in relation to the recent change in tax legislation, the Tax Cuts and Jobs Act of 2017. This study supports the accumulated evidence that voluntary giving behaviors have decreased in accordance with devalued tax benefits as well as the absence of tax incentives.

Authors

• Jin Lee, University of Louisiana at Lafayette

• Sungsil Lee