- PURPOSE: Restores and expands the non-itemizer charitable deduction
- SUPPORTED BY: Forefront, Charitable Giving Coalition, National Council of Nonprofits, United Philanthropy Forum, Council on Foundations, and others
- IMPACT: Will incentivize 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
- EQUITY NOTE: Itemizers are more likely to be wealthy and White households, thus expanding the deduction to non-itemizers makes our charitable tax policy more equitable. Not only the wealthiest should get the tax reward for their giving; all taxpayers should.
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. 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 and expand the universal charitable deduction, which is vital for nonprofit employers, programs, and people in all of our communities to provide stable funding for programs, workers, and capital projects.
Related Resources
**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.