YMCAs and other nonprofit organizations provide critical programs and services to individuals and families every day. We are able to do this with the help of charitable donations.
However, taxpayers who are now taking the increased standard deduction as a result of the 2017 Tax Cuts and Jobs Acts no longer receive a tax deduction for their charitable gifts. The loss of that incentive is affecting nonprofit organizations, with a projected reduction of $19 billion in giving per year.
We encourage Congress to support the expansion and extension of the universal charitable deduction to encourage all Americans to give more to charity during these challenging times.
Since the COVID-19 pandemic began, nonprofits are doing more with less. This bill will democratize giving by further incentivizing all American taxpayers—regardless of their income—to give to charity, thereby ensuring that our country retains a strong and independent civil society. It will also provide resources for charitable and faith-based organizations to continue providing vital services to families, workers and communities, especially those critically impacted by the pandemic.
The Universal Giving Pandemic Response and Recovery Act would increase the cap on the temporary universal charitable deduction enacted in the March 2020 CARES Act from $300 for individuals and $600 for joint filers to one-third of the standard deduction—about $4,000 for individuals and $8,000 for joint filers. It would also extend the availability of the deduction through 2022.
At the Y, we know that when we work together, we move individuals, families and communities forward. We hope Congress will take thoughtful action and seek bipartisan approaches to incentivize more charitable giving.
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Essential services like meals for kids, afterschool care and health education rely on advocacy efforts to ensure we reach more people in more communities.