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The Sensitivity of Charitable Giving to the Timing and Salience of Tax Credits

Author

Listed:
  • Ross Hickey

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne)

  • Bradley Minaker

    (University of Guelph)

  • A. Abigail Payne

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne)

Abstract
If a taxpayer is able to claim charitable donations made near the time of filing her tax return, will she give more? To what extent does the salience of tax-induced incentives matter? This paper explores the role of the timing and salience of tax incentives on reported tax filer giving. As a result of the January 12, 2010 Haiti Earthquake, taxpayers in Quebec, Canada were given an opportunity to report donations that were made near the time of filing on their 2009 tax returns, while taxpayers located elsewhere in Canada were not given this opportunity. We find that moving the timing of reporting of gifts on one’s tax returns closer to the timing of giving increases average donations by approximately 9 percentage points. We discuss the policy implications of our results along with the implications for our understanding of the tax price elasticity of charitable giving.

Suggested Citation

  • Ross Hickey & Bradley Minaker & A. Abigail Payne, 2019. "The Sensitivity of Charitable Giving to the Timing and Salience of Tax Credits," Melbourne Institute Working Paper Series wp2019n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2019n02
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Ross Hickey & Brad Minaker & A. Abigail Payne & Joanne Roberts & Justin Smith, 2023. "The Effect of Tax Price on Donations: Evidence from Canada," National Tax Journal, University of Chicago Press, vol. 76(2), pages 291-315.
    2. Dajung Jun, 2019. "The Effects of the Dependent Health Insurance Coverage Mandates on Fathers’ Job Mobility and Compensation," Melbourne Institute Working Paper Series wp2019n09, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Zachary Halberstam & James R. Hines Jr., 2023. "Quality-Aware Tax Incentives for Charitable Contributions," CESifo Working Paper Series 10250, CESifo.
    4. Asatryan, Zareh & Joulfaian, David, 2022. "Taxes and Business Philanthropy in Armenia," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 914-930.
    5. Baumgart, Eike & Blaufus, Kay & Hechtner, Frank, 2023. "The tax treatment of commuting expenses and job-related mobility," arqus Discussion Papers in Quantitative Tax Research 280, arqus - Arbeitskreis Quantitative Steuerlehre.

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    More about this item

    Keywords

    Charitable giving; donations; disaster relief; tax incentives;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid

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