Tax Returns and Charitable Contributions

This paper will examine ways to increase donations by means of a tax refund. It will compare donations from United States (US) tax returns to those in the United Kingdom (UK), and will make an effort to determine the circumstances in which a taxpayer is most likely to make the largest contribution. Additionally, this paper will attempt to shed light on how taxpayers view a tax refund as a means for charitable contribution. Technically, the amount that is being returned to the taxpayers is their money that has ben withheld from them during the year. This paper will try to determine whether or not the majority of taxpayers mentally calculate and anticipate a certain amount, or if they consider the refund to be "found money." These different forms of mentally accounting for a tax refund might have significant consequences for individuals' willingness to donate a portion of charity. Ultimately, this paper seeks to analyze the results of this economic study and apply the findings to the field of charitable giving.