Treasury Official Predicts TaxReforms Would Bring $3 Billion Increase in Charitable Donations

Sep 21, 2026

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A Treasury official argues that proposed income tax reforms will not harm charitable giving to higher education. In a response letter tied to testimony before the House Ways and Means Committee, the official states that the tax deduction for philanthropic giving is socially beneficial and should strengthen giving. Based on the steady historical link between income and philanthropy, the reforms are expected to raise total charitable donations by about $3 billion annually.

LanguageEnglish

CategoryHealthcare

FormatPDF

Pages4

Reading Time10 min

AccessFree to download

Treasury official response

Tax deductions and social goals

Expected impact on alumni and individual giving

Historical evidence on standard deduction

Projected donation growth

Higher EducationandNational Affairs Treasury Official Sees Education'sFears of Tax Reform as Unfounded* * * Leland Haworth,Atomic Scientist,To Succeed NSF's Alan Waterman American Council on Education。1785 Massachusetts Avenue,N.W.Washington 6,D.C. March 27,1963 Leland J.Haworth,an atomic scientist who has been amember of the Atomic Energy Commission for the pasttwo years,will become the new director of the NationalScience Foundation.He will succeed AlanT.Waterman, who has passed the statutory retirement age of 70.Dr.Haworth is expected to takeoffice about July 1. A 58-year-old native of Flint,Michigan,Dr.Haworth began his career as a highschool teacher in Indianapolis in 1926.He became an instructor in physics at the Uni-versity of Wisconsin in 1930 and was a Lalor Fellow in physical chemistry at the Massa-chusetts Institute of Technology from 1937 to 1938.He joined the University of Illinoisphysics faculty in 1939 and was professor of physics from 1944 to 1947. Dr.Haworth was on leave from the University of Illinois from 1941 to 1945 for de-fense work at the M.I.T.radiation laboratory.He left Illinois in 1947 to become assist-ant director of the Atomic Energy Commission's Brookhaven National Laboratory atBrookhaven,Long Island.He became the laboratory's director in 1948.In 1951,he wasnamed vice-president of Associated Universities,Inc.,the group of universities re-sponsible for Brookhaven's operation.In 1960,he was named president of the groupwhile continuing as laboratory director.He has been an Atomic Energy Commissionmem ber since 1961. Dr.Haworth holds bachelor's and master's degrees from Indiana University anda Ph.D.from the University of Wisconsin.He has honorary degrees from BucknellUniversity,Indiana University,Stevens Institute of Technology,and the University ofWisconsin.He is a member of many professional and honorary societies and servedas president of the American Nuclear Society from 1957 to 1958. Fears that the Administration's proposed income tax re-forms might have an adverse effect upon charitable con-tributions to higher education are 'without foundation,"Assistant Secretary of the Treasury Stanley S.Surrey # Treasury Official Predicts TaxReforms Would Bring $3 BillionIncrease in Charitable Donations declared in a letter of March 20 to President Logan Wilson of the American Council onEducation.Mr.Surrey was responding to testimony presented on March 7 to the HouseWays and Means Committee on behalf of the Council by Kenneth R.Erfft,vice-presidentand treasurer of the Jefferson Medical College and Medical Center (See Bulletin,Vol.XII,No.7).A partial text of Mr.Surrey's letter follows: The Treasury considers the tax deduction for philanthropic giving as sociallydesirable.This consideration was particularly important in the development ofthe President's tax program,and the over-all program should strengthen philan-thropic giving,rather than impose a restraint. Volume XII,Number 10 AEC Member Leland HaworthNamed to Succeed WatermanAt National Science Foundation As you know,the President's tax program is primarily designed to stimulatethe economy,reduce unemployment,and increase national income.It is ex-pected to accelerate the growth in personal income from its present level ofabout $440 billion to $600 billion over the next few years.Studies have shownthat philanthropic giving of individuals as a percentage of income has been fairlyconstant over the past 25 years. During this period there have been manystructural and rate changes in the tax system,but these changes have not affectedthe rate of philanthropic giving.The total amount of giving by individuals hasrisen steadily as total personal income has increased.I am confident that Dr.Levi's study group will confirm this(see Bulletin,Vol.XII,No.3).Since thehistorical relationship between income and philanthropic giving appears to beconstant,donations to philanthropy should rise to about $12 billion per year--anincrease of $3

FAQs

How is the expected increase in donations quantified in the document?

The text projects donations to philanthropy rising to about $12 billion per year, an increase of $3 billion over the current level.

Sep 21, 2026

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