House Ways and Means Committee Chairman Kevin Brady (R-TX) said that committee republicans are aiming to spur more donations to charities as part of tax overhaul efforts.
“We’re looking at ideas for how we can unlock more charitable giving. We are looking at ways we can encourage more small givers in charities, continue to encourage current givers, continue to unlock more charitable giving just throughout the economy,” Brady said January 25 at a Financial Services Roundtable event.
While lawmakers haven’t reached any final decisions as they draft legislation, the creation of an above-the-line deduction for charitable giving may be among the options under consideration, allowing both individuals who itemize and those who don’t to take advantage of the incentive.
Laura Kalick, tax consulting director at BDO USA LLP‘s healthcare and education practices, said that such a change could incentivize young people who may not itemize on their returns, or individuals who participate in crowdfunding campaigns and make small donations online, but may not think to include the gifts on their tax returns, to think more about their giving behavior.
Independent Sector is actively working in coalition and with policymakers to pursue the opportunity to open up the charitable deduction for all taxpayers in tax reform discussions. Learn more about how you can help.
Source: BNA Daily Tax Report (Subscription required)
Jamie Tucker is the director, public policy strategy and operations at Independent Sector.