Posted on Jun 17 2025
WASHINGTON, DC - The Charitable Giving Coalition (CGC) is pleased that the Senate Finance Committee has chosen to strengthen the charitable deduction for non-itemizers in its reconciliation package—a move that represents a transformative step in expanding charitable giving to all hardworking Americans.
“Permanently restoring and expanding the charitable deduction is a powerful policy change that will encourage additional giving,” said Brian Flahaven of the CGC. “Continuing to strengthen the charitable deduction in the Senate bill sends a clear message that encouraging private philanthropy is a national priority. The Coalition is immensely grateful to Senators James Lankford, Chris Coons, and our other bipartisan Senate champions for their unwavering commitment to America’s charities and the communities they serve.”
The proposed language improves upon H.R.1, the House-passed budget reconciliation bill, by making the deduction permanent and allowing all taxpayers to deduct a portion of their charitable contributions—$1,000 for individuals and $2,000 for married couples. A recent analysis by Capital Policy Analytics estimated a similar non-itemizer charitable deduction capped at $500 for individuals and $1,000 for joint filers would raise an additional $9-11 billion for charities each year.
“The numbers speak for themselves—Americans are generous to the causes they believe in,” Flahaven added. “When all Americans are given access to the tools to give, they respond with even greater generosity.”
The cost of the permanent deduction is paid for by a modest .5 percent of Adjusted Gross Income (AGI) floor on itemized givers, ensuring that revenue raised by a floor goes directly to ensuring that all Americans—not just the less than 10 percent who itemize—have access to a charitable giving incentive.
To fully unlock the potential of this new permanent deduction, CGC also urges the Senate to remove the proposed 35 percent cap on itemized charitable deductions. Unlike the floor, a cap discourages donors from making larger donations to support their charities and communities.
CGC will continue working with Congress to support and further expand tax incentives for charitable giving, oppose limits on individual and corporate giving, and promote policies that encourage all Americans to give generously.
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