Lawmakers Introduce Bill to Expand Charitable Deduction
The bill would assist those who support non-profits
Sens. James Lankford (R-OK) and Chris Coons (D-DE) introduced bipartisan legislation this week to expand and extend the expired non-itemized deduction for charitable giving.
The bill, called The Charitable Act, would allow all taxpayers who do not itemize to claim a deduction of up to one-third of the value of the standard deduction for charitable contributions, which would be around $4,500 for individuals and $9,000 for married joint filers. The standard deductions for tax year 2023 are $13,850 for individuals and $27,700 for married joint filers.
“Our families, our churches and other nonprofits are the first and most important safety net for the most vulnerable in our communities,” Lankford said. “Our nonprofits provide our neighborhoods and families 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 Delaware and across our nation, we’ve always stepped up in extraordinary ways to meet the needs of our communities,” Coons said. “People of all means gave freely to charities, houses of worship and other nonprofits last year to the tune of $449 billion last year. I am proud to have worked on the Charitable Act that will expand and extend the deductions Americans can claim to encourage even more Americans to embrace the civic virtue of charitable giving.”
The act is co-sponsored by Sens. 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), Tim Scott (R-SC) and Jeanne Shaheen (D-NH). The bill is supported by numerous nonprofits and coalitions, including the Charitable Giving Coalition, National Council of Nonprofits, Independent Sector and Association of Fundraising Professionals.
This article was provided to OSAP by ASAE's Power of Associations and Inroads.