Michelle Steel | Official U.S. House headshot
Michelle Steel | Official U.S. House headshot
WASHINGTON, D.C. - On May 17, Representatives Michelle Steel (CA-45), Blake Moore (UT-01), Danny K. Davis (NH-01), and Chris Pappas (NH-01) introduced the bipartisan "Charitable Act" to empower Americans to contribute to charitable causes and support local communities. The bill is endorsed by more than 100 nonprofits.
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.
“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.”
“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.”
"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.”
Background
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.
Original source can be found here.
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