AFP Supports Charitable Act to Incentivize Giving

CONTACTS:
Natalie Paskoski, Manager of Content, (434) 236 – 5583, Natalie.Paskoski@afpglobal.org

(Arlington, Virginia) The Association of Fundraising Professionals (AFP) is pleased to lend their support to a bipartisan bill, the Charitable Act, introduced by U.S. Senators James Lankford (R-OK) and Chris Coons (D-DE) on March 1, 2023. 

AFP has been working with senators and the Charitable Giving Coalition (CGC) to coordinate support for this important legislation, which would reinstate and expand non-itemized tax deductions for charitable giving. 

Section 2204 of the CARES Act, signed into law in March 2020, permitted eligible individuals who do not itemize deductions to deduct $300 of qualified charitable contribution throughout 2020. In December 2020 Congress extended the universal charitable deduction availability through 2021 and increased the cap to $600 for joint filers. 

In 2021, the Universal Giving Pandemic Response and Recovery Act was introduced with the goal of extending the deduction through 2022, however this bill failed to pass, allowing the deduction to expire. 

The new Charitable Act is nearly identical to the previous bill, proposing to restore the universal charitable deduction and raise the cap from $300 for individuals ($600 for joint filers) to approximately $4,600 for individuals ($9,200) for joint filers, providing additional incentive for charitable giving.

 “According to data compiled by AFP’s Fundraising Effectiveness Project, the number of small donations in the $300-$600 range, went up by nearly 11% over the course of 2020 and 2021, while the deduction was in effect. However, in 2022, there was a 5% decline as the deduction was allowed to expire,” noted Mike Geiger, president and CEO of the Association of Fundraising Professionals. “On behalf of our more than 27,000 fundraising professional members that raise more than $100 billion annually for charities, we thank U.S. Senators James Lankford and Chris Coons for their leadership in championing the Charitable Act to restore this proven giving incentive.”

AFP was pleased to endorse this bipartisan legislation and looks forward to advocating for its swift passage.

For more information about AFP’s advocacy efforts, contact David Sigman, CPA, SHRM-CP, vice president, finance & administration at david.sigman@afpglobal.org. 

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Since 1960, the Association of Fundraising Professionals (AFP) has been the standard-bearer for professionalism in fundraising. The association works to advance effective and ethical philanthropy by providing advocacy, research, education, mentoring, collaboration and technology opportunities for the world’s largest network of professional fundraisers. AFP’s more than 27,000 members in over 190 professional chapters raise over $100 billion annually for a wide variety of charitable organizations and causes across the globe. For more information, go to afpglobal.org.