Voluntary support has been a major factor in the financing of American higher education since colonial times. Yet several recent proposals intended as tax reform measures threaten to reduce voluntary donations at a time when the nation's postsecondary institutions are in the throes of financial distress. The income tax proposals that would have an adverse impact on voluntary giving include: (1) legislation proposing that gifts of appreciated property be taxed on all of their appreciation or, in the alternative, that the allowable deduction be limited to the cost basis of the property; (2) charitable contributions to the extent attributable to appreciated property be included within the concept of tax preference; (3) the Minimum Taxable Income Proposal (MTI), which would compel high income taxpayers to wait until the end of the taxable year before calculating their tax status. This would affect the timing and leadership of many capital efforts. Estate and gift tax proposals to higher education would also be affected. Available data indicated that the charitable deduction is an effective way of raising funds for higher education. In the absence of contrary evidence, it would seem highly inappropriate to repeal incentives to give at a time when colleges and universities are struggling to balance their budgets. (Author/PG)