Posted , by Brian Flahaven, Chair of the Charitable Giving Commission. Topic: Fundraising, Philanthropy Research & Events.

 

Note: This article was updated on 2/6/25 to include information on the Charitable Act (S. 317, H.R. 801) legislation introduced in the 119th Congress.

EXPANDING CHARITABLE TAX DEDUCTIONS:

YOUR NONPROFIT’S GUIDE

 

We are thrilled to collaborate with Brian Flahaven on this month’s newsletter. Brian is chair of the Charitable Giving Coalition (CGC). He highlights what is at stake this year legislatively for charitable tax deductions and what nonprofits can do to support charitable deductions for non-itemizers.

The Curtis Group is honored to be members of the CGC, supporting Brian and other sector leaders to ensure that charitable giving is promoted and valued nationwide.

Congress has a huge opportunity to democratize giving by enacting a charitable tax deduction for all Americans. As chair of the Charitable Giving Coalition (CGC), a nonpartisan coalition of charitable and faith-based organizations dedicated to preserving and expanding the charitable tax deduction, I’m asking for your help to make this happen in 2025.

Every year, generous Americans give billions of dollars to support the charitable sector. According to Giving USA, Americans gave $557 billion to charitable organizations in 2023, marking the second consecutive year giving declined in real dollars. Furthermore, there has been a troubling long-term decline in the number of Americans who give to charity.

According to Indiana University’s Lilly Family School of Philanthropy, 46.9 percent of American households gave to charity in 2020. This is a dramatic decline from the 66.2 percent of households who donated to charity in 2000; these numbers represent a loss of approximately one percentage point a year in household giving.

In addition to the long-term trend of declining donors, the doubling of the standard deduction in the 2017 Tax Cuts and Jobs Act (TCJA), a policy designed to simplify tax filing for most Americans, has had the unintended consequence of leading to a permanent reduction in charitable giving by the approximately 92 percent of American households who no longer itemize. According to researchers at Indiana University and the University of Notre Dame, the doubling of the standard deduction led to a $20 billion decline in charitable giving in 2018 and a $16 billion permanent annual drop in charitable giving.

THE GOOD NEWS

The good news is there is a legislative solution that can help reverse these trends. In 2025, Congress is expected to consider and pass tax legislation to avoid the expiration of a significant portion of tax provisions included in the TCJA. By including a charitable deduction for non-itemizers in this tax bill, lawmakers can take a major step to strengthen giving and protect America’s culture of generosity.

The CGC has spent the last 7+ years building bipartisan support and making the case for a charitable deduction for non-itemizers on Capitol Hill. Nearly one quarter of the U.S. Senate (24 Senators) and a significant number of U.S. House members (64) supported the bipartisan Charitable Act in the last Congress—legislation that would allow non-itemizing taxpayers to deduct up to $5,000 in charitable gifts per year ($10,000 for joint filers). We are pleased that a bipartisan group of Senators and Representatives has re-introduced the Charitable Act (S. 317, H.R. 801) in the new 119th Congress.

There is also strong support for expanding the charitable deduction from a wide cross-section of the charitable community. More than 600 organizations from all 50 states signed a recent CGC letter urging Congress to make the charitable tax deduction available to all. Enacting a permanent charitable deduction for non-itemizers would be a game-changer for our sector, and the CGC is committed to giving it everything we have. But we need your help to get this across the finish line.

WHAT YOU CAN DO TO HELP

  •  Join the Charitable Giving Coalition — membership in the coalition is free of charge and you can determine how active you want to be, from joining weekly calls to just being listed on our website. CGC members also receive frequent updates on the latest developments that impact charitable giving on Capitol Hill. Complete the CGC membership form.
  • Sign a CGC letter — you can still sign our aforementioned Giving Tuesday letter to congressional leaders. We update the sign-on list frequently and use this letter when meeting with lawmakers to show them who supports expanding the charitable deduction in their states/districts.
  • Contact your Members of Congress — you can simply reach out to your U.S. House and Senate members and urge them to co-sponsor the Charitable Act (S. 317, H.R. 801) and support a charitable deduction for non-itemizers. Here is a template letter.
  • Write op-eds/blogs — write a brief op-ed for your local newspaper or media about the importance of expanding the charitable deduction. Or just include a write-up on your organization’s website, outlining how a charitable deduction for non-itemizers would benefit your mission. Feel free to use data provided in this article or on the CGC website.
  • Spread the word! — forward this article to friends, family, colleagues, peers, etc. so they can also weigh in with lawmakers. Congress will be hearing from a variety of interests in 2025, so we need to make sure they hear from us!

ABOUT BRIAN FLAHAVEN

Brian Flahaven is vice president for strategic partnerships at the Council for Advancement and Support of Education (CASE), the global association for advancement professionals at all levels who work in alumni relations, communications, and development at schools, colleges, and universities. In this role, Brian oversees CASE’s global advocacy, corporate relations, fundraising, CASE@Campus training, and the Latin America region. Brian also serves as Chair of the Charitable Giving Coalition—a national coalition of public charities and private and community foundations, faith communities and other faith-based charities, and nonprofit organizations committed to expanding and preserving the charitable tax deduction in the United States.

Prior to joining CASE, Brian was the manager of government relations and public policy at the Council on Foundations. He also served as the first Public Policy and Philanthropy Fellow at the Council of Michigan Foundations and worked for former Illinois Lieutenant Governor Corinne Wood.

Brian received his bachelor’s degree in political science, economics and history at the University of Illinois at Urbana-Champaign and his Master of Public Policy from the Gerald R. Ford School of Public Policy at the University of Michigan.

In 2016, Brian earned the designation of Certified Association Executive from the American Society of Association Executives. Brian was named to the NonProfit Times Power & Influence Top 50 in 2023.

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