Do Share-of-Income Limits on Tax-Deductibility of Charitable Contributions Affect Giving?

The 2017 Tax Cut and Jobs Act increased the limitation on the tax deductibility of charitable contributions from 50 to 60 percent of adjusted gross income. This note estimates the effect of the share-of-income limitation on giving for the first time. Patterns in giving over time and across charities coincide with earlier changes in the share-of-income limit, consistent with a substantial policy effect. I estimate that the 2017 limit increase will boost aggregate household giving on the order of $10 billion