Coons leads bipartisan push to incentivize charitable giving amid COVID-19
Sens. Chris Coons, D-Delaware, and James Lankford, R-Oklahoma, led senate colleagues in March in introducing the bipartisan Universal Giving Pandemic Response and Recovery Act to expand and extend the current deduction for charitable giving.
The senate bill would ensure that Delawareans who donate to charities, houses of worship, religious organizations and other nonprofits are able to deduct that donation from their federal taxes at a higher level than the current $300 deduction. In the COVID-19 relief package passed in December 2020, an extension of the $300 charitable deduction was included for 2021.
Specifically, the bill would make available to taxpayers who do not itemize on their tax returns—for tax years 2021 and 2022 — a below-the-line deduction for charitable giving on federal income taxes valued at up to one-third of the standard deduction, around $4,000 for an individual filer and $8,000 for married joint filers.
"Seeing the need in their communities, the American people have stepped up by giving to food banks, community groups, and other nonprofits," said Coons. "People of all means want to be part of the solutions in their community — solutions often driven by charities and houses of worship — but our tax code ignores the giving of most Americans. If more Americans were acknowledged for and supported in their donations, there would be more giving, period. Our bill, the Universal Giving Pandemic Response and Recovery Act, would substantially increase the emergency charitable giving incentive to adequately reflect the magnitude of goodwill that so many are showing."