2013 Articles

The Charitable Deduction Games: Are the Laws in Your Favor?

Johnson, Khrista

The article considers why the United States only grants a deduction for charitable contributions made to US charities from a historic standpoint and why doing so is problematic in the fight against global ills. The Charitable Deduction Games examines an alternative approach to cross-border giving that is currently spreading throughout the European Union ("EU") as a result of the 2009 landmark case Hein Persche v. Finanzamt Ludenscheid. After an examination of Persche, the article explores the UK model that has resulted in response to the decision and considers why the US should adopt a similar model. Next, the article considers why the Netherlands has been reluctant to adopt a similar model in light of its historic stance. Finally, The Charitable Deduction Games examines the responses of various EU Member States to Persche and concludes with a proposal of how Persche should affect US laws governing cross-border giving.