Opinion: Giving to Prestigious Groups Is Not Charity

An opinion article written by the former secretary of labor under President Clinton, which appears in the Los Angeles Times, argues that donations made to arts organizations and universities are not really charitable.

Robert B. Reich believes that these organizations reinforce the lifestyles and privilege of the very wealthy and serve few poor people. He says that only 10 percent of charitable donations actually go to help poor people.

Mr. Reich writes, “I’m all in favor of supporting the arts and our universities, but let’s face it: These aren’t really charitable contributions. They’re often investments in the lifestyles the wealthy already enjoy and want their children to have, too. They’re also investments in prestige — especially if they result in the family name being engraved on the new wing of an art museum or symphony hall.”

He advocates a change in the federal tax code that favors charities that provide direct services to needy people, suggesting, “If the donation goes to an institution or agency set up to help the poor, the donor gets a full deduction. If the donation goes somewhere else — to an art palace, a university, a symphony, or any other nonprofit — the donor gets to deduct only half of the contribution.”

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