9/8/2020 – Expanded Universal Charitable Deduction in Senate Relief Bill Is Good Start to Restore Giving

WASHINGTON, D.C.— The Charitable Giving Coalition (CGC) is encouraged by the inclusion of an increased cap on the temporary universal charitable deduction (UCD) in the latest Senate relief package. In addition, we believe the UCD should be made permanent to provide the giving incentive beyond 2020.

Legislation unveiled yesterday would increase the current $300 cap on the temporary UCD to $600 for individuals and $1,200 for joint filers. The deduction would still expire at the end of the 2020 tax year.

“The increased cap on the deduction is a good step in the right direction,” said Brian Flahaven, chair of the CGC. “At a time when demand for charitable services is high and donations are low, it’s important that Congress encourages all Americans to donate more to charity, regardless of whether they itemize their taxes.”

The CGC has been working with lawmakers in both the House and Senate to include the Universal Giving Pandemic Response Act (UGPRA) in this year’s must-pass legislation. The UGPRA would increase the cap on the temporary UCD to about $4,000 for individuals and $8,000 for joint filers. In the Senate, the UGPRA is led by Senators Lankford (R-OK), Coons (D-DE), Lee (R-UT), Klobuchar (D-MN), Scott (R-SC) and Shaheen (D-NH). In the House, it is led by Reps. Walker (R-NC) and Pappas (D-NH).

“The charitable deduction is a lifeline for the charitable sector and the communities it serves,” Flahaven added. “To ensure Americans continue to receive the nonprofit services on which they rely, the CGC will continue to work with policymakers to further increase the cap and make the incentive permanent.”

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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.
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