Hillsborough Sun

On May 17, 2023, Congressman Chris Pappas (NH-01), alongside Representatives Blake Moore (UT-01), Michelle Steel (CA-45), and Danny Davis (IL-07) reintroduced the Charitable Act to empower Americans to contribute to charitable causes and support local communities.

"Nonprofits in New Hampshire and across the country have stepped up, again and again, to help those who are most in need," said Congressman Pappas. "It’s critical we also do our part to support their work, and through them, our communities and our neighbors. That is why I am proud to work alongside Congressman Moore to reintroduce this bipartisan legislation to expand the charitable giving deduction, support the work of our nonprofits, and highlight the charitable spirit of our nation.”

“We applaud Congressman Pappas for introducing a real incentive to support charitable giving,” said Kathleen Reardon of the NH Center for Nonprofits. “The nonprofit sector is integral to the wellbeing of New Hampshire communities and we need a non-itemizer deduction to help sustain their good work.”

The Charitable Act extends and expands the expired charitable deduction for those who do not itemize on their tax returns, ensuring that every American who donates or tithes is able to benefit from both the standard deduction and the charitable deduction. Specifically, this legislation would raise the previous $300/$600 cap on the non-itemizer deduction to 1/3 of the standard deduction, equal to roughly $4,500 for individuals and $9,000 for joint filers.

Background:

Of the $484.85 billion donated to charities in 2021, 67% of donations came from individuals. While charitable contributions from foundations and corporations have grown in recent years, the share of dollars donated by individuals has fallen for the fourth consecutive year. This alarming trend has serious implications for the churches, museums, food banks, and other nonprofits that serve our communities and unite us as Americans.

When Congress created the temporary universal charitable deduction in 2021 and 2022, the result was the generation of $10.9 billion for charities, with 25% of that coming from Americans making less than $30,000. Given the impact of the smaller deduction, the provisions in the Charitable Act will help supercharge charitable giving.

A list of supporting organizations and statements of support can be found here.

Original source can be found here.