[Principled]

This sounds very interesting. I would be concerned, however, that it would kill any industries that rely on tax free contributions. I imagine that a great number of charitable organizations would die a quick and sudden death.

You are wise to be concerned with charitable contributions - something Americans are quite good at - we are generous. The purpose of income tax deductions for charitable contributions is to make it so the donations are made with untaxed, pre-tax dollars. If no dollars are taxed, all dollars are pretax. Hence there doesn't seem to be any reason that this would affect charities in the way you mention.

Shoot, only about 25% of filers itemize anyway - and they're the only ones who can take deductions for charitable contributions.

Fair Tax FAQ.

[TheMightyQuinn]

To add to your point Principled, i believe that under the current system, contributions to charities are income tax deductable only--so that means that you still have to pay the payroll taxes on charitable contributions.

Under the FairTax, you pay no payroll taxes on charitable contributions. Therefore the FairTax would actually benefit charities.