Taxes
Billionaires Urge Tax Reform to Free $1 Trillion for Charity
- Klarman, Arnold, Novogratz argue for new philanthropy rules
- Ford, Hewlett and Kresge foundations sign on to proposal
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A coalition of billionaires, academics and large foundations says the U.S. could unlock far more money for charity just by tweaking a few tax rules.
Wealthy contributors get big tax breaks for donations even if the money then languishes in foundations or other vehicles for decades without reaching charities. The new Initiative to Accelerate Charitable Giving -- which includes wealthy donors John Arnold, Michael Novogratz and Baupost Group’s Seth Klarman, along with the Ford, Hewlett, Kresge and W.K. Kellogg foundations -- argues Congress should change the law to prod funders like them to get resources to nonprofits more quickly.