AFP Pushes COVID-19 Relief Bill, Universal Charitable Deduction

AFP has been busy on the public policy front, supporting legislation that covers nonprofits for paid leave in response to the COVID-19 outbreak, as well as additional relief bills that include the universal charitable deduction.

H.R. 6201, the Families First Coronavirus Response Act, a federal relief package that contains numerous provisions to support response to the COVID-19 pandemic, has been signed into law by the President. The legislation provides a payroll tax credit to all employers of a certain size, including charities and other nonprofits, offering emergency paid family leave and sick time pay for care related to COVID-19.

AFP is now working to get a universal charitable deduction included in additional upcoming legislation related to COVID-19 to both help offset the challenges that COVID-19 has presented to nonprofits and their missions and address the decrease in giving resulting from the 2017 tax reform bill. Earlier this week, the Charitable Giving Coalition sent Congress a letter urging them to enact a temporary universal charitable deduction to assist with COVID-19 relief efforts.

The House and Senate are working on different versions of the bill. Senator Mitch McConnell’s (R-KY) draft COVID-19 legislation contains a temporary universal charitable deduction provision (for gifts up to $300). Also, the bill appears to suspend the 50% adjusted gross income limitation for individuals’ charitable contributions and makes some corporate changes as well. Those provisions would be limited to the year 2020.

Senator McConnell’s inclusion of the temporary universal charitable deduction is great news for the sector, as it is the first time that we have seen a key congressional leader include the universal charitable deduction in their legislation.

Earlier this week, the Charitable Giving Coalition sent the attached letter to House and Senate leadership and members of the House Ways and Means and Senate Finance Committees urging them to enact a temporary universal charitable deduction to assist with COVID-19 relief efforts.

AFP will be in touch with members if grassroots support is needed to push these measures.