More than two-thirds of Americans have a charitable contribution, and nearly 80 percent of people say they would be more likely to give if they knew they could get a tax deduction for it.
But how much should Americans give?
According to the U.S. Census Bureau, nearly half of the country does not report their income, and the average person makes $45,000 a year, or about $20,000 per year if they don’t take deductions.
The nonprofit sector, which employs more than two million people and generates $9.4 trillion annually, does not collect taxes on donations.
That’s one reason why, according to the charity Giving USA, Americans give just under $4 trillion each year to charitable organizations.
But the Census Bureau says the tax code doesn’t always recognize charitable donations, and it’s unclear how much Americans should donate.
For example, it doesn’t recognize a $10,000 gift, even if it is a charity that does some good.
According to the IRS, charities are required to collect a tax on charitable contributions that exceed a certain threshold, and they must report that amount to the government.
That information is often used by charities to determine whether their donors are eligible for tax breaks.
But, according a new report from Charity Navigator, it’s not clear that many charities accurately report their donors to the tax system.
The nonprofit sector has not made a report to the Treasury Department, which is the federal agency that collects taxes on charitable donations.
According the charity, the IRS has not asked charities to report how much of their income they have received in federal tax credits since 2009, the year the law was passed.
The charity did not provide data on the amount of tax credits that were provided to organizations in 2009.
The IRS said it is currently reviewing the report and will review it if necessary.
But it’s unknown if the agency will change the IRS’s current policy.