Charitable giving

Richard A. Sokerka

A bipartisan bill introduced in Congress this month would make it easier for Americans to receive tax deductions for charitable giving, regardless of whether they itemize on their tax returns.

The Charitable Giving Tax Deduction Act would make charitable deductions “above-the-line,” meaning adjusted gross income would be reduced. This would allow taxpayers to write off charitable deductions regardless of whether households decide to itemize. Under the legislation, charitable contributions would not be capped.

“Charitable organizations, including churches and other religiously-based entities, are the life-blood of services to those in need in our society, and I am committed to a tax policy that amplifies their ability to serve our community,” said Congressman Chris Smith (R-N.J.), who authored the bill and is New Jersey’s and the nation’s foremost supporter of pro-life movement in Congress. “Americans have been generous patrons of charitable causes, and we want to ensure that everyone has the support they need to continue their generosity to charitable and philanthropic causes.”

More than a dozen religious and charitable organizations have voiced support for the bill, including the N. J. Catholic Conference (NJCC), the public policy arm of the state’s Catholic bishops.

The NJCC praised the legislation for promoting and protecting the revenue resources that help charities to function, particularly after last year’s tax code revision “makes charitable giving increasingly more difficult. Every year, N. J. Catholic Charities agencies assist hundreds of thousands of individuals and families to meet their most basic needs. Their ability to provide quality services depends upon charitable donations,” the NJCC said. “The tax code should help, not hurt nonprofit organizations tasked with serving the most vulnerable in our society. Congressman Smith’s bill would protect those revenues sources that are vital to the assistance of so many in need.”

We agree that the proposed legislation would restore the tax incentive to donate much needed funds to non-profit organizations, and urge Congress to swiftly pass Congressman Smith’s bill.