WASHINGTON, D.C.— The Charitable Giving Coalition (CGC) applauds the introduction of the Universal Giving Pandemic Response and Recovery Act by a bipartisan, bicameral group of lawmakers.
The bill would increase the cap on the temporary universal charitable deduction from $300/$600 to one-third of the standard deduction, roughly $4,000 for individuals and $8,000 for joint filers. It would also extend the availability of the deduction through 2022, and it would eliminate the exclusion of gifts to donor-advised funds from the current UCD.
“Incentivizing all taxpayers to give to charity – regardless of their income or whether they itemize – ensures that nonprofits doing critical work in our communities will receive the resources necessary to help as many Americans as possible,” said Brian Flahaven, chair of the Charitable Giving Coalition. “Our nation’s charities continue to fight to keep their doors open, and while the government relief over the past 12 months has been most welcome, we recognize that there is still more that can be done.”
The Universal Giving Pandemic Response and Recovery Act is the second iteration of a bill originally introduced by Sens. Lankford (R-OK), Coons (D-DE), Scott (R-SC), Klobuchar (D-MN), Lee (R-UT), Shaheen (D-NH) and Rep. Pappas (D-NH) and former Rep. Walker (R-NC) in the 116th Congress. The group of Senators and Rep. Pappas are joined by Sens. Collins (R-ME) and Cortez Masto (D-NV) and Rep. Walorski (R-IN) in its reintroduction this week.
“Following the enactment of the $300 temporary universal charitable deduction in March 2020, we saw an unprecedented increase in donations of $250 or less, up 17 percent in the first nine months of 2020 compared to 2019 according to the Fundraising Effectiveness Project,” added Flahaven. “While we recognize there are a number of reasons Americans donate to charity in times of great need, we do know an expanded charitable deduction can be one of those reasons.”
The Charitable Giving Coalition looks forward to working with these lawmakers, and others, to advance an expanded and extended universal charitable deduction, which will ensure all taxpayers have an incentive to give to charity when it’s needed most.
Representing private and community foundations, their grantees and independent charities, the Charitable Giving Coalition’s members include United Way Worldwide, the Salvation Army, Catholic Charities USA, the American Council on Education, Jewish Federations of North America, the American Institute for Cancer Research, the Association of Fundraising Professionals, Independent Sector, the Council on Foundations, and United Philanthropy Forum, among others. Formed in 2009, the coalition is dedicated to preserving the charitable giving incentive that ensures that our nation’s charities receive the funds necessary to fulfill their essential philanthropic missions. The coalition provides a unique and unified voice on Capitol Hill on issues affecting the charitable deduction, a voice composed of both direct lobbying and robust grassroots advocacy. www.charitablegivingcoalition.org, @CGC_DC