Permanent Charitable Deduction for Non-Itemizers Passes Senate

Strategic Insights -

US Senator James Lankford's (R-OK) bipartisan effort to restore and make permanent the non-itemizer charitable deduction up to $2,000 per couple has been included in the One Big Beautiful Bill, legislation signed into law last week. The provision aims to encourage more Americans to support churches, charities, and nonprofits serving vulnerable populations. The measure has garnered strong support from leading charitable, faith-based, and nonprofit organizations nationwide.

Key Takeaways:

  • The non-itemizer charitable deduction of up to $2,000 per couple is now permanent, allowing more Americans to support churches, charities, and nonprofits.
  • The provision aims to encourage greater charitable giving, particularly among lower- and middle-income taxpayers.
  • Numerous organizations, including the Charitable Giving Coalition, Faith and Giving, and the Nonprofit Alliance, have expressed support for the measure.
  • The non-itemizer charitable deduction has experienced a decline in giving since its temporary expiration in 2022, with an 8.9% drop in gifts from small donors in 2024 alone.
  • A permanent charitable deduction for non-itemizers will help reverse declines in charitable giving and engagement.
  • Organizations such as the Association of Fundraising Professionals, Christian Alliance for Orphans, and the Council for Advancement and Support of Education have praised Senator Lankford's leadership on the Charitable Act.

Statistics:

  • The non-itemizer charitable deduction was expected to expire, but Senator Lankford's efforts ensured its permanence.
  • The deduction of up to $2,000 per couple allows for greater charitable giving among lower- and middle-income taxpayers.
  • Small donors experienced an 8.9% decline in gifts in 2024, underscoring the need for a permanent charitable deduction for non-itemizers.
  • Charitable giving from itemizers has increased over the past several years, but diversity in giving has declined, with the non-itemizer charitable deduction helping to reverse this trend.
  • Senator Lankford's efforts have been supported by over 20 bipartisan Senate and 60 House members who champion charitable giving as a cornerstone of civic life.

Sources:

  • "Statement from Senator James Lankford and the Charitable Giving Coalition on the Inclusion of the Charitable Act in the Senate Legislation"
  • "Faith and Giving Statement on the Permanent Non-Itemizer Charitable Deduction"
  • Association of Fundraising Professionals
  • United States Senator for Oklahoma James Lankford Website