Permanent “universal charitable deduction”?
You’re likely watching what’s going on with the Charitable Act, which would make permanent the “universal charitable deduction,” which expanded the ability to deduct charitable contributions to taxpayers who do not itemize deductions. This temporary $300 charitable deduction was passed by Congress in March 2020, and it was expanded in December 2020 to $600 for joint married filers and extended through 2021. If the “universal charitable deduction” were to become permanent, research estimates that more than $17 billion in additional annual giving would be mobilized. Many nonprofits are reaching out to legislators in support of the Charitable Act and even encouraging their donors to reach out, too.