As tax-filing season begins—and a “Super Bowl” for tax legislation appears imminent on Capitol Hill—legislators are reintroducing a bipartisan bill to restore a charitable deduction for non-itemizing taxpayers. The Charitable Act would allow these donors to claim a deduction worth up to one-third of the standard deduction—$5,000 for individuals or $10,000 for joint filers in 2025.

“The charitable deduction sends a powerful message that America wants to honor and encourage openhanded generosity,” said ECFA President & CEO Michael Martin. “The Charitable Act wisely democratizes this proven incentive and supports habits of giving for all taxpayers regardless of whether they itemize on their tax forms or not.”

The century-old traditional charitable deduction remains a powerful giving incentive, but its reach has declined. The number of Americans who itemize their tax returns has dropped to less than 10 percent of filers in recent years.

The Charitable Act, however, would build on a successful pandemic-era experiment that had allowed a $300 above-the-line benefit for donations ($600 for married couples filing jointly). That small step helped fuel much-needed increases in giving in 2020 and 2021—$30 billion, according to Sens. James Lankford (R-Okla.) and Chris Coons (D-Del.), key sponsors of the bill. They said 90 million tax returns used that small incentive, and households with incomes between $30,000 and $100,000 showed the largest increases in charitable giving.

“America’s first safety net should never be the government—government is the least efficient caregiver by far,” said Lankford. “Our families, churches, and other nonprofits do incredible work to lift up those who need it most. Updating the tax law to incentivize giving empowers Americans to make an even bigger impact for the homeless, hurting, and hungry.”

“I am proud to reintroduce the Charitable Act with Senator Lankford to help the federal government encourage even more Americans to embrace the civic virtue of giving to those in need,” added Coons.

The Charitable Act was also re-introduced in the House of Representatives by Reps. Blake Moore (R-Utah), Danny Davis (D-Ill.), Carol Miller (R-W.Va.), and Chris Pappas (D-N.H.).

Churches and ministries that are members of ECFA know the value of individuals who selflessly give time and treasure to advance their Christ-honoring missions. Convinced that the government should honor and encourage all givers, ECFA will continue to be a voice in support of this important legislation.