The National Association of Evangelicals, along with over 1,000 other organizations, signed a letter as part of the Charitable Giving Coalition urging Congress to pass the Charitable Act that would restore and expand the charitable deduction for non-itemizing taxpayers.
The letter emphasizes the need to reinstate the universal charitable deduction as U.S. donation trends continue to decline. “In 2022, charitable giving fell to $499 billion, a 10.5 percent inflation-adjusted decline … and the largest year-over-year decline in total giving since Giving USA began tracking it in 1956,” the letter writes. All categories of charitable giving declined with individual giving seeing the largest drop at 13.4 percent.
The Charitable Act would restore the non-itemizer deduction and increase the amount taxpayers can deduct to one-third of the standard deduction, amounting to approximately $4,600 for individuals and $9,200 for those who file jointly. It would also make gifts to donor-advised funds eligible for the deduction.
Current data suggests that giving trends will continue to decline, but reinstalling the deduction could encourage lower-income and middle-income families who aren’t currently incentivized to donate. Passage of the act would help to ensure nonprofits can continue to operate and meet the needs of America’s communities by encouraging all Americans to donate to charity.
Furthermore, the universal charitable deduction would enable the 89% of church members who don’t itemize their tax deductions to give more to their church and to the ministries they support.
“The charitable deduction is sound tax policy. It encourages individuals to give away more money to charity than they otherwise would, as evidenced by a recent Independent Sector poll that found 53 percent of respondents said they would give more to charity if they were able to claim a charitable deduction for it. Unfortunately, the current charitable deduction is only available to those who itemize, allowing only about 10 percent of taxpayers to access it,” the letter states.Read the Letter