FANO: Charitable Giving Tax Relief Act Introduced in 107th Congress; Bill Would Provide Tax Break for Givers

Business Wire, March 7, 2001

Business & News Editors

MIAMI--(BUSINESS WIRE)--March 7, 2001

Legislation to extend the tax deduction for charitable giving to the 85 million taxpayers who do not itemize their taxes has been introduced in Congress. This legislation would acknowledge the charitable gifts of the two-thirds of taxpayers who do not itemize their tax returns and therefore cannot claim this benefit.

The Charitable Giving Tax Relief Act was introduced by Congressman Phil Crane (R-Ill.). This legislation will allow all taxpayers to deduct their charitable contributions (up to a ceiling equivalent to the standard deduction) from their taxable income. Extension of the non-itemizer deduction would provide a tax break for low- and middle-income taxpayers who make up the majority of non-itemizers.

In addition to adding a measure of fairness to the tax code, this legislation would also spur giving to nonprofit organizations. According to a recent report by PricewaterhouseCoopers for Independent Sector, the extension of the charitable deduction would:

-- Create more than 11.7 million new givers throughout the country.

-- Stimulate an additional $14.6 billion in charitable giving in the first year
and more than $160 billion over 10 years.

-- Increase current giving levels by 11%.

"Florida's 22,000 nonprofits will realize proportionate benefits," said Naomi Wright, Chair of the Florida Association of Nonprofit Organizations. "The charitable deduction for non-itemizers is good for low- and middle-income people, good for nonprofit organizations and good for the American tradition of giving," said Wright. "We applaud Congressman Crane's leadership on the non-itemizer bill."

Congressman Crane also introduced a similar version of this proposal in the last Congress, where it received 149 co-sponsors -- 80 Republicans and 69 Democrats. Co-sponsor of the bill was U.S. Representative Karen Thurman (D-Fla.).

"Charity benefits both the giver and the receiver in like proportions. The act of giving elevates the heart of the giver. The act of receiving elevates the condition of the recipient," said Wright, who is Director of Community Relations for Pro Player Stadium in Miami. "Charity is thus a blessed act that should suffer no discouragement from something so mean as the tax code."

The non-itemizer deduction is also a key part of President Bush's proposed tax package and of his effort to stimulate additional charitable giving.

This legislation enjoys widespread support from the nonprofit community. Last month, Independent Sector presented a letter to President Bush with more than 500 diverse organizations signed-on in support of this deduction.