Americans give generously regardless of their ability to claim a tax deduction; they give more when incentivized to do so. Please join PANO in signing on to this letter* in support of restoring the federal non-itemizer deduction and increasing the amount that taxpayers could deduct (approximately $4,600 for individuals and $9,200 for joint filers).
- In 2021, Americans gave almost $485 billion to charity, according to Giving USA. However, 2021 giving did not keep pace with inflation. In fact, when adjusted for inflation, 2021 giving fell by .7% compared to 2020. Recent data from the Fundraising Effectiveness Project showed a further decline of 1.7% in 2022 compared to 2021, as well as a 10% decline in donors over the same time. Furthermore, according to a September 2022 poll conducted by Independent Sector, nearly half (49%) of respondents who are very concerned about inflation said they planned to give less to charity in 2022 than they did in 2021.
- The charitable deduction is good tax policy. It encourages individuals to give away more money to charity than they otherwise would. Unfortunately, the current charitable deduction is only available to those who itemize, roughly 12% of taxpayers.
Congress can help the sector serve communities by restoring and expanding the universal charitable deduction, which encourages all Americans, regardless of income, to give to charity.
The bipartisan Charitable Act would be a step in that direction. If enacted, the bill would restore the non- itemizer charitable deduction and increase the amount taxpayers could deduct. The legislation would also make gifts to donor-advised funds eligible for the universal charitable deduction.
PANO and the National Council of Nonprofits support the work of the Charitable Giving Coalition (CGC), a diverse group representing thousands of charitable and faith-based organizations across the country.
Please join this coalition in moving this bipartisan bill forward. Sign the Letter!
*NOTE: While the letter at the link above has a sign-on deadline of May 15, signatures continue to be accepted. Add yours now while it remains open!
