Pappas Reintroduces Bipartisan Legislation to Encourage Charitable Giving and Support Local Communities

Congressman Chris Pappas (NH-01), alongside Representatives Blake Moore (UT-01), Danny Davis (IL-07), and Carole Miller (WV-01), reintroduced the Charitable Act to empower Americans to contribute to charitable causes and support local communities.

"Nonprofits in New Hampshire and across the country always step up to help those who are most in need," said Congressman Pappas. "It’s critical we do our part to support their work, and through them, our communities and our neighbors. That is why I’m reintroducing this bipartisan legislation alongside Congressman Moore to expand the charitable giving deduction, support the work of our nonprofits, and highlight the charitable spirit of our nation.”

The Charitable Act extends and expands the expired charitable deduction for those who do not itemize on their tax returns, ensuring that every American who donates or tithes is able to benefit from both the standard deduction and the charitable deduction. Specifically, this legislation would raise the previous $300/$600 cap on the non-itemizer deduction to 1/3 of the standard deduction, equal to roughly $4,500 for individuals and $9,000 for joint filers. 

Background: 

Of the $484.85 billion donated to charities in 2021, 67% of donations came from individuals. While charitable contributions from foundations and corporations have grown in recent years, the share of dollars donated by individuals has fallen for the fourth consecutive year. This alarming trend has serious implications for the churches, museums, food banks, and other nonprofits that serve our communities and unite us as Americans.

When Congress created the temporary universal charitable deduction in 2021 and 2022, the result was the generation of $10.9 billion for charities, with 25% of that coming from Americans making less than $30,000. Given the impact of the smaller deduction, the provisions in the Charitable Act will help supercharge charitable giving.

This bill is supported by numerous organizations including National Council of Nonprofits (25,000 member organizations), Charitable Giving Coalition (175 member organizations), the Nonprofit Alliance, Faith & Giving Coalition, Leadership 18, Independent Sector, YMCA, Council on Foundations, American Endowment Foundation, Philanthropy Southwest, Christian Alliance for Orphans, Ethics & Religious Liberty Commission, United Philanthropy Forum, National Association of Charitable Gift Planners, Association of Art Museum Directors, ECFA, Association of Fundraising Professionals, Council for Advancement and Support of Education, Americans for the Arts, American Heart Association, Oklahoma Center for Nonprofits, Delaware Alliance for Nonprofit Advancement, Maryland Nonprofits, Boys and Girls Club of America, March of Dimes, and Habitat for Humanity.

The text of this legislation can be found here.