WASHINGTON, D.C. – The Charitable Giving Coalition applauds the introduction of the Charitable Act by a bipartisan group of lawmakers in the House of Representatives.
The Charitable Act, sponsored by Reps. Blake Moore (R-UT), Danny Davis (D-IL), Michelle Steel (R-CA) and Chris Pappas (D-NH), would restore and expand the charitable deduction for non-itemizing taxpayers, also known as the universal charitable deduction, that expired at the end of 2021.
“By restoring a universal charitable deduction for non-itemizers, the Charitable Act acknowledges that federal tax law should extend to lower-income givers the same sort of charitable deduction it already grants to higher-income givers,” said Brian Flahaven, chair of the Charitable Giving Coalition.
The bill would increase the cap of the universal charitable deduction to one-third of the standard deduction, roughly $4,600 for individuals and $9,200 for joint filers. It would also make gifts to donor-advised funds eligible for the universal charitable deduction.
On Wednesday, the CGC sent a letter to lawmakers supporting the introduction of the Charitable Act. Nearly 500 organizations representing all 50 states and the District of Columbia joined the letter.
The Senate companion of the Charitable Act (S. 566) was introduced in February by Sens. James Lankford (R-OK) and Chris Coons (D-DE) and currently has support from 14 of their Senate colleagues.
“Following the expiration of the temporary universal charitable deduction, data from the Fundraising Effectiveness Project for 2022 showed a decline in charitable giving, with a particular decrease in donors giving $500 or less,” added Flahaven. “While we recognize there are likely many factors that contributed to these declines, one of those could be the expiration of the temporary universal charitable deduction at the end of 2021. Restoring the charitable deduction for non-itemizers ensures all taxpayers have an incentive to give more.”
The Charitable Giving Coalition looks forward to working with these champions, and their colleagues, to restore and expand the universal charitable deduction.
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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