Senators James Lankford (R-OK) and Chris Coons (D-DE) introduced legislation to make the universal charitable deduction effective for tax years 2023 and 2024. The “Charitable Act” would allow taxpayers who do not itemize their tax returns to deduct up to approximately $4,500 as individuals or about $9,000 if filing jointly for charitable deductions.
To quote Lankford, “As … Americans donate their time, money and resources to our nation’s nonprofits so they can serve people, they should be able to deduct more from their federal taxes as an incentive to financially support nonprofits since these services are often in place of government benefits.” Statistics support the fact that the expiration of a universal charitable deduction (UCD) has had a heavy impact on contributions.
Seventy-seven percent of Americans would like the UCD to expand, and 85 percent support permanent restoration of the deduction. However, the bill probably won’t pass unless it gets included with other legislation, thanks to a divided Congress. Because the bill has bipartisan support, the chances look stronger, but encourage your staff, board members, donors, and others to call their representatives and senators to pledge your support.
Homeless families often rely on nonprofit organizations and our member missions and kindred ministries for critical services such as shelter, food, and healthcare. These organizations depend on charitable donations to fund their programs and services. The Universal Charitable Deduction encourages individuals and corporations to give to these organizations by providing a tax incentive for their donations.
If the deduction were to be restored and extended, it could lead to increased charitable giving, which would in turn support the work of our member organizations. This could include organizations that provide emergency shelter, transitional housing, job training, and other services to help families escape homelessness and achieve stability.
The 300+ organizations in Citygate Network membership seek to move people in desperate situations and destitute conditions (i.e., hungry, homeless, abused, and addicted) from human suffering to human flourishing through the process of gospel-powered life transformation. If you or someone you love is in need of Christ-centered compassion and care, please visit our member locator page today to find a mission near you.
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