Today, Representatives Blake Moore (UT-01), Danny K. Davis (IL-07), Michelle Steel (CA-45), and Chris Pappas (NH-01) introduced the Charitable Act to empower Americans to contribute to charitable causes and support local communities. In addition to a broad, nationwide coalition that touches nearly every sector of our economy, the bill is endorsed by more than 100 nonprofits in Utah.
The Charitable Act extends and expands the expired charitable deduction for those who do not itemize on their tax returns, ensuring that every American who donates or tithes is able to benefit from both the standard deduction and the charitable deduction. Specifically, this legislation would raise the previous $300/$600 cap on the non-itemizer deduction to 1/3 of the standard deduction, equal to roughly $4,500 for individuals, $9,000 for joint filers.
“Today, I am honored to introduce the Charitable Act in the House. This important bipartisan and bicameral bill bolsters the power of American generosity by enabling more people to support the causes they hold dear,” said Congressman Blake Moore. “Every American, regardless of their income, can contribute by helping charities, nonprofits, and religious organizations provide vital services that go far beyond the government’s reach. Generosity and service are defining characteristics of Utahns across the Beehive State, and I am honored to introduce legislation that will help more people contribute to the causes closest to their hearts.”
“Supporting charitable giving is an example of good citizenship,” said Congressman Danny K. Davis. “Charitable contributions from individuals are vital to the ability of our churches, food banks, and other nonprofits to meet local needs. Research is clear that this charitable deduction generates the giving that helps our communities thrive. I am proud to co-lead this important bill that encourages all taxpayers regardless of income to give.”
“Churches, faith-based organizations, and charities provide vital services and support in Orange County and across the country,” said Congresswoman Michelle Steel. “Our legislation will empower more constituents to give to their local charities by ensuring our tax code rewards generosity. These groups are irreplaceably rooted on the front lines of their neighborhoods, protecting and assisting those most in need. I am proud to work with my colleagues to help these vital charities and our communities thrive.”
“Nonprofits in New Hampshire and across the country have stepped up, again and again, to help those who are most in need,” said Congressman Chris Pappas. “It’s critical we also do our part to support their work, and through them, our communities and our neighbors. That is why I am proud to work alongside Congressman Moore to reintroduce this bipartisan legislation to expand the charitable giving deduction, support the work of our nonprofits, and highlight the charitable spirit of our nation.”
Of the $484.85 billion donated to charities in 2021, 67% of donations came from individuals. While charitable contributions from foundations and corporations have grown in recent years, the share of dollars donated by individuals has fallen for the fourth consecutive year. This alarming trend has serious implications for the churches, museums, food banks, and other nonprofits that serve our communities and unite us as Americans.
When Congress created the temporary universal charitable deduction in 2021 and 2022, the result was the generation of $10.9 billion for charities, with 25% of that coming from Americans making less than $30,000. Given the impact of the smaller deduction, the provisions in the Charitable Act will help supercharge charitable giving.
A letter of support from the Utah Nonprofits Association can be found here, and letters of support from the National Council of Nonprofits and the Charitable Giving Coalition are linked here and here, respectively.
Statements of Support
“According to data compiled by AFP’s Fundraising Effectiveness Project, the number of small donations went up in 2020 and 2021 after Congress enacted a universal charitable deduction but then small-gift donors collapsed in 2022 after the temporary universal charitable deduction was not renewed,” noted Mike Geiger, President and CEO of the Association of Fundraising Professionals. “On behalf of our more than 27,000 fundraising professional members that raise more than $100 billion annually for charities, we thank Representatives Blake Moore, Danny Davis, Michelle Steel, and Chris Pappas for their leadership in championing the Charitable Act to restore this proven giving incentive.”
“Our country is stronger when everyone can support the charitable organizations that work tirelessly to improve and enrich our communities. The renewal and expansion of the universal charitable deduction for non-itemizing taxpayers through the Charitable Act would encourage philanthropic minded individuals nationwide, regardless of income, to give to charity. The American Heart Association greatly appreciates Reps. Moore, Rep. Davis, Rep. Steel, and Rep. Pappas’ leadership and commitment to America’s charitable community and urges Congress to move the bill forward quickly,” said Mark Schoeberl, Executive Vice President, Advocacy, American Heart Association.
“United Philanthropy Forum applauds Reps. Blake Moore, Danny Davis, Michelle Steel, and Chris Pappas for supporting America’s charitable organizations and the communities they serve,” said David Biemesderfer, President & CEO of United Philanthropy Forum. “United Philanthropy Forum believes that a universal charitable deduction is a fair and efficient way to encourage Americans to contribute more to charities, help strengthen a longstanding culture of giving in our country, and incentivize younger taxpayers to make charitable investments in the communities and causes they care about.”
“Goodwill Industries International supports the bipartisan introduction of The Charitable Act. At a time when the nonprofit sector is seeing an increased need for programs while funds are tightening, Congress should do everything it its power to incentivize giving,” said Steven C. Preston, president and CEO of Goodwill Industries International. “Donors are vital to our ability to fulfill our mission of providing workforce development and job training services.”
“The Nonprofit Alliance would like to commend the strong bipartisan leadership of Congressmen Moore and Pappas on the Charitable Act. This legislation, which will broaden the base of charitable donors, is vital toward achieving a vibrant charitable sector beneficial to the entire nation,” said Shannon McCracken, Chief Executive Officer of The Nonprofit Alliance.
“We welcome The Charitable Act because it would expand tax incentives for Americans to donate to charities and all nonprofits. This legislation would help strengthen our nation’s communities and increase the number of donors,” said Dr. Akilah Watkins, president and CEO of Independent Sector. “Research we’ve released shows that such a proposal could generate over $17 billion in additional charitable contributions each year, if made permanent. Expanded giving incentives for all Americans, regardless of income, would create a fairer system, better enabling charities and all nonprofits to make the communities we serve, stronger, healthier, and more equitable.”
“The charitable deduction is a proven and effective tool to leverage private investment in charitable organizations, and raising private support has become crucial for colleges and universities. It helps our 1,700 member institutions to deliver on their educational, research, and public service missions,” said Liz Clark, vice president for policy and research at the National Association of College and University Business Officers (NACUBO). “On behalf of business officers at colleges and universities across the country, NACUBO applauds the introduction of the Charitable Act and Reps. Chris Pappas and Blake Moore for their leadership. Donations of all sizes are vital to colleges and universities, and incentives for charitable giving should be available to everyone, including individuals who don’t itemize their taxes.”
“Generosity and charitable giving are fundamental parts of the American identity,” said Angela F. Williams, President and CEO of United Way Worldwide. “United Way Worldwide is proud to support the bipartisan Charitable Act, which will make it easier for Americans to give to the charitable causes they support in a time of historic need.”
“We applaud Representatives Moore and Pappas for introducing the bipartisan Charitable Act,” said Faith & Giving executive director Brian Walsh. “By extending a robust charitable deduction to generous lower-income givers, the Charitable Act will help ensure multiple thousands of religious congregations and faith-based charities thrive and continue providing care for our needy and hurting neighbors.”
“Nonprofits need tools like the nonitemizer deduction proposed by the Charitable Act to meet growing and changing community needs,” said YMCA of the USA President and CEO Suzanne McCormick. “As expected, the universal charitable deduction enacted temporarily during the height of the pandemic unlocked more giving. Making the deduction permanent will provide an ongoing incentive to increase giving and also will counteract inflation. Representatives Moore, Steel, Davis and Pappas recognize that charitable giving is essential in helping nonprofits like the Y make their communities stronger. We are grateful for their leadership and support.”
“Everyone who gives charitably deserves to receive a charitable deduction,” said Council on Foundations President and CEO Kathleen P. Enright. “As communities continue to struggle with inflation and the lingering effects of the pandemic, expanding the charitable deduction will encourage more households to give and those that already give to increase their philanthropy.”
“Communities and the nonprofits that serve them rely on the generosity of all Americans to provide vital services to their beneficiaries,” said Brian Flahaven, Chair, Charitable Giving Coalition. “The Charitable Act’s restoration of the universal charitable deduction for non-itemizers acknowledges that all givers to charity, no matter their income or the size of their gifts, are deserving of a tax incentive to give more. The Charitable Giving Coalition thanks Representatives Moore, Davis, Steel, and Pappas for their leadership in the House on this issue, and we look forward to working with the champions of the Charitable Act to advance the bill and renew the charitable giving incentive for all American taxpayers.”
“We applaud Representatives Blake Moore, Danny Davis, Michelle Steel, and Chris Pappas for their leadership in introducing the bipartisan Charitable Act, legislation that will encourage all taxpayers, regardless of income, to make charitable donations to schools, colleges, and universities across the country,” said Sue Cunningham, President and CEO, Council for Advancement and Support Education. “When donors give more, educational institutions can offer greater opportunity and access to students who will be our future leaders; conduct life transforming and saving research that benefits us all; and enhance society through public service programs and community engagement. We strongly support the Charitable Act and will urge Congress to support its swift passage.”
“Charitable giving has not kept up with inflation, let alone met increasing community needs. The Charitable Act proposes sound tax policy that would incentivize millions more taxpayers to give to their local community-based organizations, enabling people to feel more invested in, engaged with, and supportive of the collective success of their neighbors and community. The networks of the National Council of Nonprofits enthusiastically endorse this vital legislation,” said Tim Delaney, President & CEO, National Council of Nonprofits.