12/21/20 – Congress Includes Extended Universal Charitable Deduction Through 2021 in Year-End Legislation
WASHINGTON, D.C.— The Charitable Giving Coalition (CGC) applauds the inclusion of an extended temporary universal charitable deduction in year-end relief legislation and looks forward to working with lawmakers to enhance the UCD in the 117th Congress.
The year-end COVID relief package includes an extension of the $300 universal charitable deduction for non-itemizers through 2021 and doubles the cap to $600 for joint filers. The bill also extends through 2021 the temporary AGI limit increase on itemized charitable deductions for cash gifts, which was increased from 60 percent to 100 percent in the CARES Act.
“The charitable deduction encourages Americans to give more to charity than they otherwise would,” said Brian Flahaven, chair of the CGC. “Extending the availability of the temporary universal charitable deduction through 2021 will allow all Americans to continue receiving a benefit for at least some of their charitable gifts during a year when needs are high.”
The CGC appreciates lawmakers’ acknowledgement that the charitable deduction works. Extending the availability of the universal charitable deduction through 2021 and doubling the cap for joint filers will continue to encourage taxpayers to give back to charities across the country that support their communities and work forces. As lawmakers enter the 117th Congress, we encourage them to protect and enhance the universal charitable deduction.
“We look forward to working with lawmakers in both the House and Senate to reintroduce legislation to create a permanent universal charitable deduction next Congress,” said Flahaven. “We made great strides to restore giving this year with the temporary universal charitable deduction, and the increase in donations under $250 shows it’s working. The charitable sector has always represented a lifeline for our communities, and it is of paramount importance that preserving and expanding the value of the deduction is a priority in the 117th Congress.”
The Charitable Giving Coalition
Representing private and community foundations, their grantees and independent charities, the Charitable Giving Coalition’s members include United Way Worldwide, the Salvation Army, Catholic Charities USA, the American Council on Education, Jewish Federations of North America, the American Institute for Cancer Research, the Association of Fundraising Professionals, Independent Sector, the Council on Foundations, and The Philanthropy Roundtable, among others. Formed in 2009, the coalition is dedicated to preserving the charitable giving incentive that ensures that our nation’s charities receive the funds necessary to fulfill their essential philanthropic missions. The coalition provides a unique and unified voice on Capitol Hill on issues affecting the charitable deduction, a voice composed of both direct lobbying and robust grassroots advocacy.www.protectgiving.org, #protectgiving, @CGC_DC