Reasons for continuing to allow the charitable deduction for income tax purposes rather than changing to a tax credit equal to 30 percent of a person's charitable donations are presented. It is projected that support for certain charities, primarily colleges and universities, would decline after implementation of a tax credit system. The current financial crisis in higher education and the role of voluntary support to institutions are discussed. Theoretical arguments against substituting a tax credit for charitable deduction are offered. The view of charitable deduction as a tax subsidy is contested, and the tax credit is viewed as less equitable than the deduction. It is proposed that a tax credit substitution would substantially reduce giving by high income individuals to make gifts. A tax credit for charitable contributions would increase the disposable income of the wealthy, decrease the income of middle- and lower-income individuals, and result in a less progressive distribution of income than with a charitable deduction. It is concluded that the proposal to substitute a tax credit for the charitable deduction is as a matter of tax theory questionable, is as a matter of tax policy less equitable than the deduction, and is as a practical matter unacceptable. (SW)