First Day Podcast

In this episode of the First Day Podcast, host Bill Stanczykiewicz, Ed.D., welcomes Howard Husock of the American Enterprise Institute and E.J. McMahon of the Empire Center for Public Policy to discuss the impact of the 2017 federal tax reforms on charitable giving. They explore how the doubling of the standard deduction reduced the number of taxpayers who itemize, significantly diminishing the tax incentives for charitable contributions. While overall charitable giving has increased in nominal terms since 2017, the share of adjusted gross income dedicated to philanthropy, particularly by middle- and upper-middle-income households, has notably declined. Howard and E.J. detail how the reforms affected donor behavior, especially among households earning $100,000 to $200,000—a critical demographic for many nonprofits. With fewer taxpayers itemizing deductions, the traditional end-of-year giving surge, driven by tax considerations, has weakened. Meanwhile, wealthier individuals earning $1 million or more have in