Today marks Giving Tuesday, an annual opportunity for people to recognize and support the important role that charities, churches, and other nonprofit organizations play in communities all across the country.
The Tax Cuts and Jobs Act approved by the House earlier this month will increase charitable giving and help charities do even more to assist our fellow Americans in need. As Ways and Means Committee Chairman Kevin Brady (R-TX) said during an event at the American Enterprise Institute (AEI) this morning:
“With a stronger economy, keeping the charitable deduction in place, in fact increasing the ability to use it more, and having the type of paychecks where people can give more at home and in the community, I think that drives more charitable giving.”
CLICK HERE to watch or read the full remarks below.
Question: “What’s your sense of the impact that this bill, overall, might have on giving itself? … More people will be taking the standard deduction, fewer people will be itemizing. … Are you concerned about the overall level of giving?”
Chairman Brady: “I’m not. In fact, I think it’ll increase. Here’s why.
“One: today as you know the charitable deduction is only used by those who itemize. So, a lot of families who are giving at church each week or giving to that … school … because their kids are there, that don’t itemize, get $0. There’s zero incentive. Doubling the standard deduction allows them to use their money the way they see fit; and more of it, including for those types of charitable giving.
“Secondly: what’s little reported is that we actually increase the amount that people can give through the charitable deduction. Today, it’s limited to 50% of your income. We increase it to 60%.
“But we know this. At the end of the day, track the last half century, track charitable giving, there’s one thing that drives it – a stronger economy.
“When the economy is pumping, charitable giving dramatically increases. When it goes down, we see the exact same effect as well.
“So, I’m convinced at the end of the day with a stronger economy, keeping the charitable deduction in place, in fact increasing the ability to use it more, and having the type of paychecks where people can give more at home and in the community, I think that drives more charitable giving.”
CLICK HERE to learn more about the Tax Cuts and Jobs Act.