Bipartisan Bill Aims to Restore Tax Credits for Charitable Giving

A bipartisan group of lawmakers has reintroduced legislation to restore charitable tax credits, aiming to encourage more Americans to donate to nonprofits, including churches and faith-based organizations. The proposed Charitable Act, led by Senators James Lankford (R-OK) and Chris Coons (D-DE), would allow families to deduct up to $4,600 in charitable donations, significantly increasing the previous $300 deduction.

Expanding Charitable Tax Credits for More Americans

Currently, only taxpayers who itemize their deductions can claim tax benefits for charitable contributions. If passed, this bill would expand access to charitable tax credits, benefiting middle-income families and encouraging greater generosity. A similar measure was temporarily enacted under the CARES Act in 2020, resulting in an additional $30 billion in donations to charities and religious organizations.

Declining Church and Nonprofit Donations

Nonprofit leaders are advocating for the measure, citing a significant decline in giving in recent years. A Ministry Brands study found that church donations dropped by 55% in 2023, and research from Infinity Concepts and Grey Matter showed a 17% decrease in giving among evangelicals. Many churches and charities are struggling to maintain services due to rising costs and lower contributions.

Why Lawmakers Say the Charitable Act is Necessary

Senator Lankford emphasized the importance of nonprofit organizations in supporting communities, stating, “The safety net of the world is not the federal government—it’s families, churches, and nonprofits.” Hundreds of nonprofit groups support the legislation, arguing that reinstating charitable tax credits will provide much-needed financial relief and empower faith-based organizations to continue their missions.

Restoring Incentives to Strengthen Giving

The bill’s supporters hope that restoring this tax incentive will reverse declining donations and strengthen the nonprofit sector, ensuring essential services continue to reach those in need. Advocates believe that making charitable giving more accessible through charitable tax credits will encourage more Americans to contribute to causes that matter most to them.

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