Tax deduction? What tax deduction?
Written by Robin Elmerick, CICF Senior Director of Effective Philanthropy
Despite–or perhaps in light of–the recent whirlwind of commentary about new federal laws and the implications for the charitable deduction and charitable giving, it is really important keep in mind that for most individuals, the decision to give is driven by deeply personal factors–such as compassion, moral obligation, empathy, or a belief in a cause—rather than financial incentives.
Indeed, altruism and emotional resonance, not tax breaks, are at the heart of philanthropic motivation. While tax incentives can influence giving, they typically play a supporting role—not a leading one. Psychological and social drivers are deeply powerful motivators for giving that tax considerations cannot match.
That’s why we have always loved this article from the Greater Good Science Center and what it stands for, including our favorite points:
Generosity is truly human.
Generous behavior isn’t merely a social construct. It’s embedded in our evolutionary makeup. Researchers have found that species ranging from bees and chimpanzees to bats exhibit “prosocial” behaviors, suggesting that generosity evolved to enhance survival. In humans, acts of generosity light up the brain’s reward pathways—similar to pleasurable experiences like eating or intimacy—highlighting that generosity is inherently satisfying.
Philanthropy benefits both the giver and the receiver.
Engaging in generous acts delivers tangible psychological and even physical benefits. Volunteering and offering support—whether time, goods, or emotional aid—have been linked to increased well-being, higher self-esteem, and even delayed mortality, particularly among older adults. Furthermore, many studies reported greater happiness when spending resources on others compared to oneself. At the CICF Collaborative, we often talk about helping our fundholders find the “joy in giving”. We believe that having a defined philanthropic vision and purpose helps you maximize your impact both for the causes you support and your own sense of gratification. In fact, we have services tailored to helping you align your philanthropic mission with the areas that truly matter to you to help you do just that.
Charitable values can be nurtured.
It’s especially good news that acts of philanthropy are influenced by a blend of personal and social factors. Certainly empathy, humility, and moral values play a role. What’s more, cultural norms, expectations of reciprocity, and strong social networks motivate generosity, too. Unsurprisingly, people are more inclined to come to the aid of specific individuals rather than abstract causes, and generosity tends to be “contagious”—spreading through social groups and communities.
If you love supporting your favorite causes no matter what’s going on with the tax laws, you are in good company! At the CICF Collaborative we are honored to work with hundreds of families and individuals whose giving is anchored in genuine concern for others. This in turn helps create sustainable long-term positive impact in the community we all love.
About the CICF Collaborative
CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unities the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more »
About the Author
Robin Elmerick, senior director of effective philanthropy has been with CICF since 2019. A certified Impact Philanthropy Advisor, she works closely with fundholders across all entities of the CICF Collaborative to help them define their philanthropic strategies and maximize their impact. With a background in nonprofit leadership and consulting, she is passionate about bridging the needs of the community with the missions of nonprofits and the passions of our fundholders, aligning all three to create meaningful change in Central Indiana and beyond.