Source: United States Senator for New Hampshire Jeanne Shaheen
March 03, 2023
(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH) and a bipartisan group of Senators introduced The Charitable Act this week. The Senators’ bill would expand and extend the expired non-itemized deduction for charitable giving, ensuring Americans who donate to charities, houses of worship, religious organizations and other nonprofits of their choice are able to deduct that donation from their federal taxes at a higher level than the previous $300 deduction.
Specifically, the bill would make available to taxpayers, who do not itemize on their tax return, a below-the-line deduction for charitable giving on federal income taxes valued at 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.
“Charitable donations are a lifeline for many nonprofits, helping to keep doors open and continue much-needed services for local residents. As our communities continue their recovery from the pandemic, it’s critical that we ensure nonprofit organizations on the frontlines assisting families are supported. Our legislation would make an overdue, commonsense change to offset the effects of the 2017 tax law, which weakened funding options for nonprofits nationwide. It’s time for Congress to take action to better support important nonprofit organizations by implementing tax incentives that encourage Granite Staters and Americans to contribute where they can to cherished causes,” said Shaheen.
The bill is supported by numerous nonprofits including YMCA, United Way, Goodwill Industries and the American Heart Association in addition to coalitions of thousands of nonprofits including the Charitable Giving Coalition (175 member organizations), the National Council of Nonprofits (25,000 member organizations), Leadership18, 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 and the Faith & Giving Coalition.
The bill was led by U.S. Senators James Lankford (R-OK) and Chris Coons (D-DE). Additional cosponsors include Senators Catherine Cortez Masto (D-NV), Marco Rubio (R-FL), Maggie Hassan (D-NH), Raphael Warnock (D-GA), Susan Collins (R-ME), Amy Klobuchar (D-MN), Gary Peters (D-MI) and Tim Scott (R-SC).
Full bill text is available here.
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