Washington D.C. – U.S. Senators Katie Britt (R-Ala.), James Lankford (R-Okla.), and Chris Coons (D-Del.) have introduced the Charitable Act, a bipartisan bill aimed at expanding and permanently reinstating the non-itemized deduction for charitable giving. The legislation seeks to encourage charitable donations by allowing taxpayers who do not itemize deductions to claim a tax benefit for their contributions.
Originally included in a legislative package signed into law by President Donald Trump in 2020, the temporary provision enabled approximately 90 million tax filers to utilize the deduction. Reports indicate that households earning between $30,000 and $100,000 saw the largest increase in charitable contributions, with non-profit organizations receiving an estimated $30 billion in additional donations as a result.
Supporters of the bill argue that reinstating and expanding the deduction will benefit non-profits, faith-based organizations, and community support programs by incentivizing increased charitable giving. Senator Britt emphasized the importance of making it easier for families to support those in need, while Senator Lankford highlighted the role of local organizations in providing aid to vulnerable populations. Senator Coons noted the substantial generosity demonstrated by Americans in 2023, with a collective $557 billion donated to charities, religious institutions, and non-profits.
The Charitable Act has received backing from a wide range of organizations, including the National Council of Nonprofits, Charitable Giving Coalition, YMCA, Habitat for Humanity, American Heart Association, Boys and Girls Club of America, and March of Dimes, among others.
The proposed legislation will now move through the legislative process, where it will be considered by Congress for potential enactment.
