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AHP Advocacy Update: The Universal Charitable Giving Act

  • 1.  AHP Advocacy Update: The Universal Charitable Giving Act

    Posted 11-01-2017 10:27 AM


    What the Universal Charitable Giving Act (H.R.3988) is:

    Congressman Mike Walker from North Carolina's sixth district introduced the Universal Charitable Giving Act on October 5, 2017. The proposed bill would allow above-the-line deductions for charitable contributions from individuals not itemizing deductions.

    Under current law, only taxpayers who itemize their deductions receive a tax incentive for contributions made to qualified charitable organizations. The act may:

    • Incentivize charitable giving for low- and middle-class taxpayers
    • Allow all taxpayers to deduct charitable giving, regardless of itemizing status
    • Empower taxpayers to direct funds to socially productive organizations they care about
    • Help overcome the significant decrease in charitable giving and community resources if the proposed tax reform is passed in its current state

    What happens if it doesn't pass:

    The alternative to the Act is the Republican-proposed tax reform plan, which could shrink the percentage of taxpayers who itemize to only 5%. 30 million taxpayers itemized in 2016 would no longer have the giving incentive, resulting in a loss of $13.1 billion in charitable contributions, according to the Indiana University Lilly Family School of Philanthropy. Neither plan has received the full support of Congress.

    What it means for you:

    For many AHP members, this would significantly remove incentives for donors to give. The charitable giving provision helps us generate giving in our communities. With already dwindling sources of funding, the reduction of the charitable giving tax deduction will increase the difficulties we face in enabling our communities to give back.

    What AHP supports:

    AHP supports Congressman Mike Walker's introduction of the Universal Charitable Giving Act as an alternative to proposed tax reform plan. It is an effective step toward resolving some issues with the proposed plan and recognizes the benefits of the current tax deduction for charitable contributions.

    The Universal Charitable Giving Act includes a cap, however, and AHP also supports the Charitable Giving Coalition's proposal for a universal charitable deduction for non-itemizers as a fair resolution that will continue to encourage Americans to redirect their dollars to charity.

    Stay updated on the bill here.

    Sarah Busching
    Comms Mgr
    Association for Healthcare Philanthropy
    Falls Church VA
    (703) 532-3514