CONTACT: Carla Bundy or John Thomas at 202-467-6100

(Washington, D.C.) — As tax time approaches, legislation has been re-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.

The Charitable Giving Tax Relief Act (HR 1310) was re-introduced by Congressman Philip Crane (R-IL), and cosponsored by a bipartisan group of Representatives: William Coyne (D-PA), Wally Herger (R-CA), and Karen Thurman (D-FL) — all members of the House Ways and Means Committee. This legislation would allow nonitemizers to deduct 50 percent of their annual charitable contributions over $500 each year. The average contribution from households who do not itemize is $619, according to a national study of charitable giving, Giving and Volunteering in the United States, 1999, by Independent Sector.

"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.

Under current law, nonitemizers receive a standard deduction while only taxpayers who itemize their deductions receive a direct tax incentive to give to charities. "This legislation is tax relief for the millions of individuals who put their altruism into action," said Representative Philip Crane. "Who is more deserving of tax relief than people who give what they have to help others?"

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.

"Hardworking people give generously to their religious congregations and to the organizations of their choice, such as the American Diabetes Association and Boys and Girls Clubs of America. Without their help, these organizations could not provide the invaluable services they do to our communities," said Representative Karen Thurman.

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.

"This bill will restore a measure of fairness to the tax code by recognizing the contributions of nonitemizers. These givers have been denied the deduction for too long," said Representative Wally Herger.

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.