Source: United States Senator for Delaware Christopher Coons
WASHINGTON – U.S. Senators Chris Coons (D-Del.) and James Lankford (R-Okla.) introduced the Charitable Act to expand and extend the expired universal deduction for charitable giving. Under this new bill, Americans who donate to charities, houses of worship, religious organizations, and other nonprofits of their choice would be able to deduct that donation from their federal taxes, even if they don’t otherwise itemize their deductions.
Specifically, the bill would make available to taxpayers who do not otherwise itemize their deductions a below-the-line deduction for charitable giving on federal income taxes of up to one-third of the standard deduction (around $4,500 for an individual filer and around $9,000 for married joint filers). The standard deductions for tax year 2023 are $13,850 for individual filers and those married filing separately, and $27,700 for married joint filers.
“In Delaware and across our nation, we’ve always stepped up in extraordinary ways to meet the needs of our communities,” said Senator Coons. “People of all means gave freely to charities, houses of worship, and other nonprofits to the tune of $449 billion last year. I am proud to have worked on the Charitable Act, which will expand and extend the deductions Americans can claim to encourage even more Americans to embrace the civic virtue of charitable giving.”
“Our families, our churches, and other nonprofits are the first and most important safety net for the most vulnerable in our communities,” said Senator Lankford. “Our nonprofits provide our neighborhoods and families with vital job training, compassionate homeless assistance, food in times of crisis, and spiritual counsel during our best and worst days. As Oklahomans and Americans donate their time, money, and resources to our nation’s nonprofits so they can serve people, they should be able to deduct more from their federal taxes as an incentive to financially support nonprofits since these services are often in place of government benefits.”
In addition to Senators Coons and Lankford, the Charitable Act was introduced with Senators Catherine Cortez Masto (D-Nev.), Marco Rubio (R-Fla.), Maggie Hassan (D-N.H.), Raphael Warnock (D-Ga.), Susan Collins (R-Maine), Amy Klobuchar (D-Minn.), Gary Peters (D-Mich.), Tim Scott (R-S.C.), and Jeanne Shaheen (D-N.H.).
The bill is supported by numerous nonprofits, including YMCA, United Way, Goodwill Industries, and the American Heart Association, as well as coalitions of thousands of nonprofits including the Charitable Giving Coalition (175 member organizations), the National Council of Nonprofits (25,000 member organizations), Leadership 18, the Nonprofit Alliance, United Philanthropy Forum, the National Philanthropic Trust, Jewish Federations of North America, Independent Sector, Philanthropy Southwest, the Association of Fundraising Professionals, Council for Advancement and Support of Education, the Faith & Giving Coalition, and Covenant House.
“Every day we see the value and benefit of nonprofit work in lifting up people and helping our communities,” said Sheila Bravo, President and CEO of the Delaware Alliance for Nonprofit Advancement. “We support the Charitable Act, as this bill provides an important reminder and incentive for Americans to give generously. We thank Senator Coons and his colleagues for their leadership and their ongoing efforts to champion nonprofits who step in to provide relief and support community needs in many different ways.”
“The Nonprofit Alliance would like to commend the strong bipartisan leadership of Senators Lankford and Coons on the Charitable Act. This legislation, which will broaden the base of charitable donors, is vital for achieving a vibrant charitable sector beneficial to the entire nation,” said Mark Micali, Vice President, Government Affairs for the Nonprofit Alliance.
Additional quotes of support from stakeholders can be found here.
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