March 1, 2000

As tax time approaches, legislation has been introduced in Congress to expand the tax deduction for charitable giving to nonitemizers. Eighty-four million taxpayers do not itemize on their returns and therefore do not receive any tax recognition for their charitable contributions.

Senator Rick Santorum (R-PA) introduced legislation, S. 2077, that mirrored Representative Philip Crane's (R-IL), H.R. 1310, in the House of Representatives.  Both bills will permit nonitemizers to deduct 50 percent of their charitable contributions above a $500 floor.

This is the first time the nonitemizer deduction has been introduced in the Senate.  This comes on the heels of inclusion of the proposal in the President's FY 2001 budget.  The nonitemizer deduction has also been included as part of George W. Bush's platform on tax issues.  The nonitemizer deduction has been a priority of Independent Sector for eight years.  We are encouraged by the broad support the legislation has received.

"As the deadline for filing taxes nears, many Americans will claim deductions for their charitable contributions for 1999. But more than 84 million nonitemizers who donate to charities will not be afforded that opportunity. The Charitable Giving Tax Relief Act will remedy this by offering these generous individuals the tax recognition they deserve," said Sara E. Meléndez, President and CEO, Independent Sector.

The benefits of this legislation are twofold — it gives charitable organizations much needed support, and improves tax fairness by giving nonitemizers a similar opportunity to deduct charitable contributions as higher income itemizers.

"Girl Scouts of the USA depends on contributions to make a positive difference in the lives of more than 2.5 million girls," said Marsha Johnson Evans, National Executive Director. "The deduction for nonitemizing taxpayers will encourage more people to support the charities that give voice to their heart."

At a time when charitable organizations are being asked to do more than ever before, the Charitable Giving Tax Relief Act will encourage charitable giving among all taxpayers. According to Price Waterhouse, the bill would increase giving by approximately $3.1 billion per year. From 1998-2002, it would spur an additional $16.5 billion in charitable contributions.

In the early 1980s, nonitemizers had the ability to deduct a portion of their charitable contributions but in 1986, the deduction expired due to a sunset provision in the law.

The Charitable Giving Relief Act (HR 2499) received bipartisan support in the 105th Congress, with 144 cosponsors including a majority of the House Ways and Means Committee. Passage of this legislation is a priority of Independent Sector.

Independent Sector is a national leadership forum, working to encourage philanthropy, volunteering, not-for-profit initiative and citizen action to better serve people and communities.