Robert Reich explains Why Charity Doesn’t Begin at Home:
It turns out that only an estimated 10% of all charitable deductions are directed at the poor.
So here’s a modest proposal. At a time when the number of needy continues to rise, when government doesn’t have the money to do what’s necessary for them and when America’s very rich are richer than ever, we should revise the tax code: Focus the charitable deduction on real charities.
If the donation goes to an institution or agency set up to help the poor, the donor gets a full deduction. If the donation goes somewhere else — to an art palace, a university, a symphony or any other nonprofit — the donor gets to deduct only half of the contribution.
The money that goes to a Lincoln Center gala or naming rights to an opera house would do a lot of good if given to a real charity.