Hundreds of nonprofit organizations, including ECFA, are urging Members of Congress to permanently restore a charitable deduction for non-itemizing taxpayers. And you have an opportunity prior to Giving Tuesday to join them!
Last month, the Charitable Giving Coalition submitted a detailed public comment to leaders of the House Ways & Means Committee highlighting the vital role of nonprofit organizations in America and explaining the importance of the charitable deduction in encouraging support for their operations. The letter specifically pushed for the enactment of the Charitable Act, which would allow non-itemizing charitable givers to claim a deduction worth up to one-third the standard deduction—more than $4,800 for individuals or $9,700 for joint filers in 2024.
“The Charitable Act will incentivize all Americans, regardless of income, to give more to support local soup kitchens, homeless and domestic abuse shelters, disaster relief organizations, schools, cultural organizations, and religious congregations and ministries— among innumerable other crucial charities,” said letter signatories.
The coalition also lauded the century-old traditional charitable deduction. However, the number of Americans able to benefit from that incentive has dwindled, as those who itemize their tax returns have dropped to less than 10 percent of filers in recent years.
This Charitable Act, in contrast, would use a proven strategy to vastly expand the number of Americans whose generosity could be honored by the tax code. Indeed, the bill, which has bipartisan support in the House and the Senate, builds on a previously successful pandemic-era experiment allowing 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.
“It’s time to bring back the universal charitable deduction, which data shows was clearly a success,” said Michael Martin, ECFA President & CEO, in a press release issued by Sen. James Lankford (R-Okla.) earlier this year. “The government should honor and encourage the generosity of all charitable givers regardless of whether they itemize on their tax forms or not.”
The Charitable Giving Coalition plans to re-submit its letter to congressional leaders on Giving Tuesday (December 3) with additional organization signatures. If your church or ministry would like to participate in this letter, please review and complete the information in this form organized by the coalition by Monday, December 2.