CRS - Charitable Contributions for Haiti’s Earthquake Victims
- The HAITI Act accelerates income tax benefits for charitable cash contributions to aid Haiti earthquake victims.
- The act is similar to legislation passed following the 2004 Indian Ocean tsunami and Hurricane Katrina.
- The Joint Committee on Taxation estimates the HAITI Act would result in revenue losses of approximately $2 million over 10 years.
- Empirical evidence suggests that tax benefits for charitable giving do not significantly increase donations.
- The accelerated deduction primarily benefits itemizing taxpayers and higher-income individuals.
On January 12, 2010, a magnitude 7.0 earthquake struck Haiti, causing widespread devastation. In response, the U.S. Congress passed the Haiti Assistance Income Tax Incentive Act (HAITI Act) to encourage charitable giving for earthquake relief. This legislation allows taxpayers making charitable contributions of cash to organizations providing aid to earthquake victims between January 11, 2010, and March 1, 2010, to take the associated charitable deduction on their 2009 income tax returns. The report analyzes the HAITI Act, comparing it to similar measures enacted following the 2004 Indian Ocean tsunami and Hurricane Katrina. It assesses the act's potential impact on economic efficiency, equity, and complexity, considering factors such as the price elasticity of charitable giving and the potential for donor fatigue.
How to cite
Congressional Research Service (CRS), 2010, CRS - Charitable Contributions for Haiti’s Earthquake Victims, accessed via HaitiDocs, https://www.haitidocs.org/doc/crs-2010-charitable-contributions-haiti-s