Congressman Blake Moore (R-UT) has reintroduced the Charitable Act, a bipartisan effort aimed at encouraging charitable donations and supporting local communities. Co-sponsors of the bill include Congressman Danny K. Davis (D-IL), Congresswoman Carol Miller (R-WV), Congressman Chris Pappas (D-NH), and Congressman Jimmy Panetta (D-CA). The companion legislation was introduced in the Senate by Senator James Lankford (R-OK).
The proposed legislation seeks to extend and expand the expired charitable deduction for non-itemizers on their tax returns. It aims to increase the previous cap from $300/$600 to one-third of the standard deduction, approximately $4,500 for individuals and $9,000 for joint filers.
"Supporting local communities and giving to charities is integral to enhancing the lives of all Americans," said Congressman Moore. He emphasized that this act would empower more people to contribute regardless of income.
Senator Lankford remarked, "America’s first safety net should never be the government—government is the least efficient caregiver by far." He highlighted that updating tax laws would enable Americans to have a greater impact on those in need.
Congressman Davis added, "Charitable giving is at the heart of strong, thriving communities." He noted that expanding deductions empowers people to support vital services such as housing, healthcare, education, and social services.
Congresswoman Miller expressed her support by stating, "People donate to charities out of kindness...the last thing they should worry about is paying taxes on their generous contributions."
Congressman Pappas pointed out that nonprofits play a crucial role in aiding those most in need: "It’s critical we do our part to support their work."
The Charitable Act was initially included in the CARES Act signed into law by President Trump. The policy led 90 million tax returns to utilize this deduction with households earning between $30,000 and $100,000 showing significant increases in charitable giving.
Numerous organizations back this bill including National Council of Nonprofits, Charitable Giving Coalition, YMCA among others.