TAX INCENTIVES FOR CORPORATE GIVING PROGRAMS - WHAT MEASURES INCREASEFUNDS AVAILABLE

Policy differences in the treatment of corporations and nonprofit priv ate corporate foundations raise several issues of interest to those wh o administer and receive donations, as well as those who hope to augme nt government funds with private charitable donations. Of the $6 billi on donated by corporations to charitable in 1994, approximately one-fo urth came through corporate foundations. What determines the choice of giving through a foundation or directly to charity? The author examin es the financial implications for each type of corporate giving by pre senting specific elements of current policy on tax rates and deduction s for giving. Specific factors considered are (1) differences in the t reatment of corporate and foundation income, (2) deductibility of diff erent types of gifts, (3) occurrence of donations to non-U.S. (Non-tax -deductible) charities, (4) sales of assets to fund corporate foundati ons, (5) effects of giving on corporate image, and (6) effects of cont ributions over time. Analysis of regulations illustrates motivating fa ctors for why corporate executives make certain types of gifts in cert ain ways. The author clarifies how social workers, fundraisers, nonpro fit manages, and corporate officials alike benefit from understanding the differences among types of gifts, methods of giving, and deductibi lity of corporate donations.