Many Americans are generous.  But most don't itemize their taxes.  Shouldn't all Americans, itemizers and nonitemizers alike, receive a tax deduction for their charitable gifts?

INDEPENDENT SECTOR's top legislative priority is extending the deduction for charitable gifts to the nearly two-thirds of Americans -- over 84 million people -- who do not itemize their taxes.  This would stimulate new giving of more than $14 billion per year.

We support President George W. Bush's proposed plan which would allow nonitemizers to deduct 100% of their charitable contributions, up to the amount of the standard deduction applicable to the nonitemizer.

We invite you to join us in this campaign. 

• Consult IS's resources on the Bush Administration's proposals regarding faith-based action and community initiatives, including a letter to the president urging the passage of the nonitemizer charitable deduction.
• See our January 15, 2001 ad in Roll Call (PDF format).

For more information, contact us.

Generosity Deserves Recognition

It's Only Fair

Charitable contributions are part of a long-standing American tradition.  Extending the tax deduction to nonitemizers is long overdue.  The Charitable Nonitemizer Deduction improves tax fairness by giving nonitemizers -- more than 84 million taxpayers -- who give generously, the opportunity to deduct charitable contributions on their tax returns.

Currently, someone who contributes $1,000 to charity annually but does not itemize her taxes would be unable to deduct any of her contributions.  The Nonitemizer Charitable Deduction would allow her to deduct some portion of these charitable gifts.

The average charitable contribution from individuals and families who do not itemize on their tax returns is $619, according to a national study of charitable giving conducted by INDEPENDENT SECTOR, Giving and Volunteering in the United States, 1999.

A Unique Deduction

The deduction for charitable giving is different from any other because it rewards people for helping others, not themselves.  It is based on generosity and sacrifice, not personal gain.

The Nonitemizer Charitable Deduction:

• Is based on generosity and sacrifice, not personal gain.  In 1986, the tax deduction expired due to a sunset provision in the law. We believe that our public policies should recognize those who give significant portions of their income to the causes they care about.

• Provides nonitemizers with a new opportunity to contribute and receive recognition for their generosity.  It provides modest tax relief for nonitemizers, who tend to be low and middle income taxpayers and currently do not have a deduction available to them.

• Recognizes the contributions of individuals and families, and acknowledges the contributions charitable organizations make to communities.  It is an example of effective and meaningful tax policy.

Encouraging Charity

The Charitable Nonitemizer Deduction would significantly increase charitable giving, according to a study commissioned by INDEPENDENT SECTOR and conducted by PricewaterhouseCoopers.

PricewaterhouseCoopers examined data on more than 96,000 actual tax returns and added information on charitable giving by taxpayers who do not itemize on their returns.

The study found that President-elect Bush's Nonitemizer Charitable Deduction proposal would increase charitable giving by more than $14.6 billion, an increase of over 11%, at 2000 income levels.  The average annual charitable gift from families earning between $20,000 and $30,000 would increase from $611 to $767.

Of course, people contribute to charities for many reasons.  They don't give because they receive a tax deduction.  They give because it's the right thing to do.  However, once people make the decision to give, the amount that they contribute is influenced by their ability to deduct their contributions.

Bipartisan Support

The Charitable Giving Tax Relief Act received bipartisan support in the 106th Congress, as well as in the 105th Congress.