Tax-price elasticity of charitable donations – evidence from the German taxpayer panel

Abstract

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Tax Prices and Charitable Giving: Projected Changes in Donations Under the 2017 TCJA

“…Recent evidence from other countries also suggests that charitable contributions are sensitive to their tax treatment. Adena (2014) and Bönke and Werdt (2015) find that higherincome households in Germany have relatively high tax-price elasticities. Almunia, Lockwood, and Scharf (2018) find elasticities of about -0.35 in the United Kingdom, while Fack and Landais (2010) find elasticities of -0.2 to -0.6 from France's generous tax subsidies.…”

Who donates and how? New evidence on the tax incentives in the canton of Geneva, Switzerland

“…Certain authors observe a link with the size of donations , showing that donors giving larger amounts react more to tax incentives (Fack & Landais, 2010). Others find such links studying the characteristics of the donors themselves , such as their income, wealth, age and other characteristics (Adena, 2021). Clotfelter, 1990 shows that giving increases with the donors' income (even though giving as a percentage of donors' income, which is in relative and not absolute terms, is declining), education and age (Andreoni, 2015, p. 361).…”

“…Same authors find that the vast majority (88.1%) of affluent households gave to charity in 2020 (Osili et al, 2021). The observation that donors from richer income and/or wealth segments are more responsive to tax incentives appears both in European and US papers (Adena, 2021;Bakija & Heim, 2011). In a number of studies that are not necessarily related to tax deductions researchers conclude that those who earn more are more likely to give to charity and give larger amounts (Clark et al, 2019, p. 13, and references).…”