ICYMI: Ask Your Senators to Co-Sponsor the Charitable Act
Join United Philanthropy Forum and the broader philanthropic sector in support of the Charitable Act (S.566), a bill that would implement a Universal Charitable Deduction (UCD). 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.
On March 1, 2023, Senators James Lankford (R-OK) and Chris Coons (D-DE) introduced the Charitable Act. The bill allows individual taxpayers who do not otherwise itemize their tax deductions a deduction in taxable years beginning in 2023 or 2024 for charitable contributions. The deduction is limited to one-third of the standard deduction allowed to such taxpayers.
This bi-partisan bill currently has 13 co-sponsors, 7 Democrats and 6 Republicans.
The Charitable Act would restore the non-itemizer charitable deduction and raise the caps from $300 for individuals/$600 for joint filers to one-third of the standard deduction. In 2023, this change would allow taxpayers who don’t itemize to claim a deduction for charitable giving up to approximately $4,600 for individuals/$9,200 for joint filers, in addition to claiming the standard deduction itself. The deduction in the bill would be in effect for taxable years 2023 and 2024 and indexed for inflation.
Charitable dollars are essential to maintaining a healthy civil society, vital to both nonprofit charities and local governments that depend on these resources to achieve their critical missions. The charitable deduction is good tax policy – a simple calculation shows that those in need receive at least $2.50 in benefit for every $1 of tax benefit. This is an impressive return on investment.
The Forum supports the Charitable Act and looks forward to working with you to urge Congress to enact this important legislation.