%0 Unpublished work %T Is Charitable Giving Political? Evidence from Wealth and Income Tax Returns %+ Département d'économie (Sciences Po) (ECON) %+ Center for Economic Policy Research (CEPR) %+ Université de Liège %A Cagé, Julia %A Guillot, Malka %Z Discussion Paper Series n° 17597. This is a revised version dated 2022-10-07 %8 2021-06-30 %D 2021 %K Charitable giving %K Political donations %K Tax incentives for giving %K Tax deductions %K Wealth tax credit %K Cross-elasticity of donations %K Nonprofit organizations %Z Humanities and Social Sciences/Economics and FinancePreprints, Working Papers, ... %X Is charitable giving politically motivated? In this article, we use exhaustive administrative household panel data and a natural experiment to quantify empirically the motivations for giving. Our dataset includes all the households filing their income tax and/or their wealth tax returns in France between 2006 and 2019. In France, both charitable and political donations benefit from a 66% income tax credit, but only the charitable ones are eligible for the 75% wealth tax credit. We exploit the 2017 wealth-tax reform – a change in the taxable base that led to a drop of two third in the number of liable households and, as a result, an increase in the price of charitable giving – and show that charitable and political donations are substitute. According to our estimates, a one-percent increase in the price of charitable giving leads to an increase of around 0.12% in political donations. Next, using city-level information, we show that the increase in the price of charitable giving mostly benefits pro-business political parties. Finally, we document that the drop in charitable donations is mostly driven by politically-involved nonprofit organizations, pointing toward political motivations behind charitable giving. %G English %2 https://sciencespo.hal.science/hal-03877993/document %2 https://sciencespo.hal.science/hal-03877993/file/2022_cage_guillot_is_charitable_giving_political_evidence_from_wealth_and_income_tax_returns.pdf %L hal-03877993 %U https://sciencespo.hal.science/hal-03877993 %~ SHS %~ SCIENCESPO %~ CNRS %~ AO-ECONOMIE %~ OPENAIRE %~ ANR %~ ECON-SCPO %~ SCPO_OA %~ SCPO-REPEC