WASHINGTON, D.C.— In response to President Biden’s American Families Plan proposal released on Wednesday, the Charitable Giving Coalition (CGC) issued the following statement:
We’re encouraged that the American Families Plan did not reduce the value of the charitable deduction, by capping itemized deductions at 28 percent, as was previously proposed. Any limit or cap to the deduction for charitable giving could have devastating effects on the nonprofit sector and the beneficiaries it serves, and we encourage policymakers to exempt the charitable deduction from any limitations on itemized deductions in future proposals.
The charitable deduction is unique and different from other itemized deductions in that it encourages individuals to give away a portion of their income with no tangible benefit in return. It rewards a selfless act and incentives more charitable giving, which is vital as charities struggle to raise the funds needed to respond to the increased needs of the nation following this unprecedented health crisis.
We applaud the White House for protecting the full scope and value of the charitable deduction and look forward to working with the Administration and Congress to advance policies that will increase charitable giving, such as expanding and extending the temporary universal charitable deduction.
The Charitable Giving Coalition
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