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Thursday, January 30, 2025

Charitable act seeks to boost donations through expanded tax deductions

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Sen. Jerry Moran, US Senator for Kansas | Official U.S. Senate headshot

Sen. Jerry Moran, US Senator for Kansas | Official U.S. Senate headshot

Today, U.S. Senator Jerry Moran (R-Kan.) joined Senators James Lankford (R-Okla.) and Chris Coons (D-Del.), along with ten other colleagues, to introduce the Charitable Act. This legislation aims to expand and extend the expired non-itemized deduction for charitable giving. The proposed bill would allow Americans who donate to charities, houses of worship, religious organizations, and other nonprofits to deduct those donations from their federal taxes at a higher level than currently allowed.

The original deduction was enacted as part of the CARES Act in 2020 under President Trump. This policy led to 90 million tax returns using the deduction, with households earning between $30,000 and $100,000 experiencing the largest increase in charitable contributions. As a result, charitable organizations saw an increase of $30 billion in donations.

Senator Moran stated: “Americans continuously demonstrate their generosity and their desire to help those in need through their charitable giving.” He emphasized that updating tax laws will encourage more donations by providing resources for individuals requiring assistance.

Senator Lankford added: “America’s first safety net should never be the government—government is the least efficient caregiver by far,” highlighting that families, churches, and nonprofits do vital work supporting those in need. He believes that incentivizing giving through updated tax laws can amplify efforts for the homeless and hungry.

Senator Coons remarked on past generosity: “Delawareans have always risen to the occasion in support of our communities.” Last year alone, Americans donated $557 billion collectively. He expressed pride in reintroducing the Charitable Act alongside Senator Lankford to foster further civic engagement.

The bill also garnered support from Senators Catherine Cortez Masto (D-Nev.), John Hickenlooper (D-Colo.), Pete Ricketts (R-Neb.), Amy Klobuchar (D-Minn.), Raphael Warnock (D-Ga.), Jeanne Shaheen (D-N.H.), John Curtis (R-Utah), Marsha Blackburn (R-Tenn.), Katie Britt (R-Ala.) and Tim Scott (R-S.C.).

Numerous organizations back this legislation including National Council of Nonprofits with its 25,000 member organizations; Charitable Giving Coalition with 175 members; 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 as well as Boys and Girls Club of America and March of Dimes.

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