Request

We urge members of the House and Senate to:

• include a universal charitable deduction (UCD) in any forthcoming tax package. A UCD allows taxpayers who do not itemize to deduct charitable gifts. We also urge members to cosponsor the Charitable Act (S. 566/H.R. 3435), which would renew and expand the UCD that expired at the end of 2021.

Introduction

Contributions to 501(c)(3) charities such as museums are tax-deductible, incentivizing those who itemize deductions to give more. Only about ten percent of taxpayers now itemize deductions, however. Smaller gifts increased during the pandemic due to the enactment of the temporary UCD, which allowed taxpayers to deduct up to $300 ($600 for couples), and they have decreased since it lapsed. Moreover, the percentage of Americans who donate to charity has been on a long-term decline, sinking from two-thirds twenty years ago to under half now.

Talking Points

• Charitable giving accounts for more than one-third of museums’ operating funds.
• The CARES Act of 2020 established a limited and temporary deduction for non-itemizers at the start of the pandemic. Charitable giving increased following its enactment and dropped after it expired.
• A universal charitable deduction democratizes charity by incentivizing all taxpayers to contribute, regardless of income.
• It is broadly supported across the entire charitable sector.

Status

• Bipartisan bills have been introduced in both the House and the Senate to renew and expand the universal charitable deduction. They would temporarily renew the deduction and expand it to nearly $4,900 for individuals and over $9,700 for couples. Both bills have equal numbers of Republican and Democratic cosponsors.
• Senators who wish to cosponsor should contact the offices of James Lankford (R-OK) or Chris Coons (D-DE). Representatives should contact the offices of Blake Moore (R-UT) or Danny Davis (D-IL).

Facts and Figures

More information on how giving increased while the universal charitable deduction was in effect, and dropped when it expired, is available here.

»Tax Policy Printable PDF

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Supporting Letters and Testimony

• Charitable Giving Coalition Submits 2017 Testimony to Senate Finance Committee
• Alliance Joins Coalition Letter Thanking Senators Thune and Wyden for Introducing CHARITY Act
• Joint Nonprofit Letter Opposing IRS Gift Substantiation Regulation
• Joint Letter Urging Congress to Act on Permanent Extension of Charitable Tax Provisions, Including Several Museums
• National Nonprofits Urge Congress to Renew Charitable Tax Provisions
• Alliance Joins Coalition Letter to Presidential Candidates in Support of Charitable Giving Deductions
• Alliance Joins Coalition Letter to Senate Finance Committee Working Groups
• Hundreds of Museums Join November Letter in Support of IRA Rollover
• Alliance Joins Charitable Deduction Letter to Rep. Paul Ryan
• Over 220 Museums Join Open House Letter in Support of IRA Rollover
• Alliance Joins Open Letter to House Ways and Means Committee (IRA Rollover)
• Alliance Joins IS Letter in Support of IRA Rollover
• 33 Senators Sign On to Letter to Protect Charitable Deduction
• Hundreds of Museums Join Charitable Deduction Letter
• Alliance Joins Letter to Senate Finance Committee
• Alliance Joins Coalition Letter to the White House
• Alliance Joins Coalition Letter to Senate Budget Committee
• Alliance Testimony on Tax Reform and Charitable Contributions
• Alliance Joins Statement to House Ways & Means Committee
• Ford Bell’s Testimony on Tax-Exempt Organizations
• Alliance Joins Letter Opposing Limitations to Charitable Deduction
• Alliance Joins IS Letter Supporting Preserving the Charitable Deduction