[Foundation-l] Fwd: The question of tax-deductible donations

[Ray Saintonge]

Michael Bimmler wrote:
> [forwarded post from non-member]
>
> From: Mike Godwin <mgodwin at wikimedia.org>
>
> My own research today seems to confirm the view that, while in some
> nations a contribution to Wikimedia is tax-deductible, in others it is
> not. In effect, it seems there is no general answer, and the specific
> answers for each country can be maddeningly complex -- complex enough
> that we could spend a whole lot of time trying to dig up the answer
> for every nation where a donor might reside. I'll see if I can find a
> resource that makes it easier, but I'm not hopeful about that.
>
> So ... I'd like to de-emphasize tax-deductibility to the extent
> possible, if we can do it.  We so know that Americans who give can get
> a break on their American taxes.  We also know that some donors in
> other nations can do something similar, sometimes, to some extent.
> Beyond that, we don't have a general answer yet, and there may not be
> one.
>
> The point I think Brian McNeil has made is a good one -- only a third
> of Americans itemize their deductions, and we have no reason to
> believe the demographics of our American donors are different from
> those of Americans generally. (That's the null hypothesis.) What this
> suggests is, in the absence of more data about donors and
> deductibility, we should stress altruism more than the tax deductions.
> Yes, we can say "in some nations, including in the United States, you
> may be able to obtain a tax deduction for your donation."  Or
> something similar. But I don't want to take the risk of overpromising
> on the tax-deduction question.  We'd like people to give to Wikimedia
> because it's the right thing to do and not because they necessarily
> get a reduction in their taxes.
>
> I'm sorry not to have a neat, general answer to what turns out to be
> complex question, but I'm still researching it.
Wasn't it Anthony that first raised the issue of itemized deductions?

The other thing about US deductibility is that one should not assume 
that federal deductibility always implies deductibility on state 
returns, or city returns (where applicable) and vice versa.

I would disagree on the demographics of American donors.  The one single 
thing that triggers itemized deductions more than anything else is home 
mortgage interest.  Given that we have a large proportion of students 
involved in Wikipedia, and they have not usually gotten to the point of 
buying a home, it would be reasonable to suggest that they are worse off 
than the statistically average American.

I do agree with the general tone of Mike's message.

Ec