• PURPOSE:  Expansion and extension of the universal charitable deduction, which supports the social impact sector’s workforce
• SUPPORTED BY:  Forefront, Charitable Giving Coalition, National Council of Nonprofits, United Philanthropy Forum
• IMPACT:  Restores and expands the universal non-itemizer charitable deduction, thereby incentivizing all taxpayers to give to charity, regardless of their income or whether they itemize, providing unrestricted funds and capital to help stabilize the nonprofit workforce

Background

Since 1917, a charitable deduction in various forms have incentivized folks to engage in our democracy by supporting the charitable causes they care about in their communities. But, in 2017, the universal charitable deduction was eliminated when the higher standard deduction went into place. But, in response to COVID, in 2020 and 2021, Congress temporarily reinstated a universal deduction, allowing all non-itemizing taxpayers to deduct up to $300/$600 (single/joint) in charitable giving. Providing this universal deduction during COVID worked: the Fundraising Effectiveness Project (FEP) found that more taxpayers made gifts of $300 and $600 than in previous years. This bipartisan legislation would restore the universal charitable deduction, raising it to one-third of the standard deduction (roughly $4,600 for individuals and $9,200 for couples). Restoring and/or expanding the 2020-2021 universal charitable deduction is vital for nonprofit employers, programs, and people in all of our communities to provide stable funding for programs, workers, and capital projects. Further, it's more fair: not only the wealthiest non-itemizers should get the tax reward for their giving. All taxpayers should.

Related Resources

• Charitable Giving Coalition (CGC)
• Forefront Fact Sheet 
• CGC Fact Sheet
• Charitable Giving Coalition National Sign-on Letter (11/28/23)
• Impact of COVID era deduction on giving

**All philanthropic sector advocates are encouraged to support this legislation. For private foundations, advocacy and lobbying activities in support of the universal charitable deduction falls under the self-defense exception. Private foundations may participate in direct lobbying activities for this legislation and other legislation designed to protect the charitable deduction.