Universal Charitable Deduction proposal encourages charitable giving during COVID-19 crisis, but $300 cap should be increased or eliminated


A temporary universal charitable deduction proposed in the CARES Act is a step in the right direction, but we believe all charitable donations should be made tax-deductible at this time to encourage all individuals, regardless of income, to give more to help in the crisis. 

Congressional leaders are now negotiating what would be the third major piece of legislation addressing the impact of the COVID-19 coronavirus outbreak. The package under consideration so far includes the creation of a temporary universal charitable deduction, with a maximum deduction of $300. We believe this cap should be removed to encourage all Americans to give more to help charitable organizations continue to provide vital services to families, workers, and communities critically impacted by the novel coronavirus.

We ask you to urge your representatives to support the creation of a temporary universal charitable deduction, without the $300 cap.

All gifts to 501(c)(3) organizations are tax deductible; however, many donors no longer itemize their deductions due to the increased standard exemption passed in the Tax Cuts and Jobs Act of 2017. The CARES Act would allow everyone — itemizers and nonitemizers — to record their deductions on their taxes, but only up to $300. Nonprofits are and will remain on the front lines of supporting our communities during this crisis, but while the demand for such services will increase, a drop in charitable giving is expected. A temporary universal charitable deduction will encourage all individuals, regardless of income, to give more to help in the crisis.

Creating a permanent Universal Charitable Deduction is among the main priorities of our 2020 Policy Agenda.

Call and email your representatives and senators today with this message:

We were glad to see a temporary universal charitable deduction included in the relief bill introduced in the Senate on Thursday, and we encourage you to help nonprofits continue to provide vital services by increasing or eliminating the cap on the deduction in the CARES Act to incentivize all taxpayers to give more to nonprofits in this time of crisis. We urge you not to limit the deduction to gifts to certain types of charities, as all nonprofit organizations will be impacted by this virus. 
 
You can look up your representatives by zip code here. Contact Sens. Lindsey Graham and Tim Scott here.

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