Charitable Contributions

Research Problem 3
Charitable Contributions Analysis
Lianne Abare
Michele Metzer
                                                      Federal Taxation
      Strayer University
          November 19, 2011

Charitable Contributions Analysis

Abstract

The intent of this paper is to provide background information on at least four persons who have made major charitable contributions.   As assigned, the focus will be on Bill Gates, Warren Buffet and Steve Jobs.   The additional individuals will be Oprah Winfrey and Elvis Presley.
The paper will provide a brief background on their types of donations; discuss the tax benefits of their donations including the ethical concerns.   In conclusion, a brief recommendation will be made to determine if their donations should continue and whether it would be to the benefit of the individuals concerned.



Charitable Contributions Analysis

The first individual to be discussed will be Warren Buffet.   Mr. Buffet claims to have made over 62B dollars in 2010 and had an AGI of 39B dollars   [ (Bernie Kent, 2011) ].   Most of the variance is due to capital gains and losses which are adjustments for AGI.   The charitable contributions and local taxes are from AGI which is how the taxable rate of 17.4% was determined.   This rate is much lower than persons who are employed by his company.   Since his income is so much greater than his subordinates he qualifies for a higher percentage of charitable deductions.   If they are cash donations he would be able to contribute nearly 20B dollars.   This figure is astounding.   He obviously is doing something right but only to his benefit.   This will be discussed in the summary statement as will the ethical concerns related to his donations. The majority of Americans are somewhere in the 30% range [   (CBS Political News Hotsheet, 2011) ].  
The next individual to be discussed will be Bill Gates.   While he and his spouse support the Bill and Melinda Gates Foundation a specific request... [continues]

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