Tax Issues Relating to Charitable Contributions and Organizations
"The value of tax benefits for charitable contributions and organizations is
estimated to be around $100 billion per year. About half of this cost arises from the
deductions for charitable contributions, and about half from exemptions of earnings
of non-profits.

While revisions to the treatment of charitable contributions and tax-exempt
organizations that receive contributions have been made in the past few years, several issues may be considered in future legislation. Of most immediate concern are the provisions that, as a part of the “extenders,” expired at the end of 2007 and may be considered for extension. Other issues that may arise reflect concerns about donor advised funds and supporting organizations (now under study at the Treasury Department), nonprofit hospitals’ provision of charity care, and educational
institutions’ use of growing endowments. While no current proposals are under
consideration, charitable contribution floors and extensions to non-itemizers were
included in the President’s Advisory Panels’ tax proposals and in the Congressional
Budget Office’s budget options study..."