The philanthropic giving in moral economy and tax incentives effect on it Case Study: Selected Cities of Iran (2009-2016)

The purpose of this study is to examine the response of charity to tax incentives using tax returns submitted by real individuals. Since governments use tax incentive policies to attract voluntary contributions from the private sector to reduce costs, in this study, it has been tried while addressing the concept of philanthropic giving and tax incentives, the philanthropic giving in the moral economy and the effect of tax incentives on it to be investigated by using panel data during the period of 2009-2016 in eight cities of Tabriz, Isfahan, Shiraz, Urmia, Mashhad, Ahvaz, Rasht and Arak. The results of the research confirm that there is a positive and significant relationship between the income of individuals, the giving cost and age with philanthropic giving; this means that by increasing the income of individuals, the giving cost and age, philanthropic giving increases. Since a large number of job-seekers are in the middle and lower income classes and in the current situation, this group pays more for charity than the high-income group, so the cost or the price of aid should be reduced to encourage this group. On the other hand, income elasticity is 0.85 and the elasticity of giving cost is 0.06 which reflects the coordination between income and price and its effect on philanthropic giving. In the following, the response of charity to tax incentives using tax elasticity indicates that there is a negative and significant relationship between the tax and philanthropic giving