22 June 2020

PRESS RELEASE: Senators Introduce Bill to Expand Temporary Universal Charitable Deduction and Increase Charitable Giving

WASHINGTON, D.C.— The Alliance for Charitable Reform (ACR) applauds legislation introduced this week in the U.S. Senate that expands the cap on and extends the availability of the universal charitable deduction that was included in the CARES Act that passed in March.

“We thank senators Lankford, Coons, Lee, Shaheen, Scott and Klobuchar for recognizing the need to drive more donations to charities in a time of great need. Allowing all Americans to deduct their charitable giving, up to about $8,000 for a married couple, in both 2019 and 2020 will encourage Americans to give more money away, putting it into the hands of organizations that are delivering critical services during the current crises,” said Sandra Swirski, executive director of ACR.

The Universal Giving Pandemic Response Act increases the $300 cap on the temporary universal charitable deduction to one-third of the standard deduction, so $4,026 for individuals and $8,052 for married couples. It also enables taxpayers to claim the deduction on their 2019 tax returns if gifts were made before the July 15th deadline.

“The share of American taxpayers giving to charity has been steadily declining for nearly two decades, indicating perhaps a fading culture of giving,” Swirski added. “The effort to extend the deduction to all Americans, instead of only to those at the top, signals that all Americans should be equally encouraged to participate in civil society. We look forward to working with this group of senators to advance this bill in the next relief package and extend its availability in future years.”

The bill text can be found here.