Bipartisan Charitable Act Introduced in the House

Reps. Blake Moore (R-UT), Danny Davis (D-IL), Michele Steel (R-CA) and Chris Pappas (D-NH) introduced the Charitable Act in the House last week. The bill would allow all taxpayers, including non-itemizers, to deduct up to one-third of the value of the standard deduction for charitable contributions, which comes to about $4,500 for individuals and about $9,000 for married joint filers. Identical legislation was introduced in the Senate earlier this year.

The bill is intended to incentivize charitable giving by individuals, which has fallen for four consecutive years even as contributions from foundations and corporations has grown. When Congress created the temporary universal charitable deduction in 2021 and 2022, it generated $10.9 billion for charities, with 25% of that coming from Americans making less than $30,000 a year.

“This important bipartisan and bicameral bill bolsters the power of American generosity by enabling more people to support the causes they hold dear,” Moore said. “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.”

“Supporting charitable giving is an example of good citizenship,” Davis said. “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.”

The Charitable Act is supported by numerous nonprofits and coalitions including the Charitable Giving Coalition, National Council of Nonprofits, Independent Sector and Association of Fundraising Professionals.