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Currently, only ¾«¶«Ó°Òµns who itemize their tax returns are eligible to take their charitable donations as tax deductions. Those who take the standard deduction — nearly two-thirds of all ¾«¶«Ó°Òµns — are generally ineligible to take tax deductions from charitable giving.Ìý

The Ìý[H.R. 4002] would create a new federal program called Flexible Giving Accounts (FGA), a pre-tax payroll deduction for employee giving,Ìýthereby providing a tax break to any ¾«¶«Ó°Òµn who donates to charity.Ìý

As of charitable giving andÌýemployee workplace giving,Ìý¾«¶«Ó°Òµ’s Charities joinsÌýthe Ìýand other advocates in publicly supportingÌýthis bipartisan legislation.Ìý

The Everyday Philanthropist Act

When it comes to charitable giving incentives, our current tax code exclusively benefits the wealthy: about 70 percentÌýof ¾«¶«Ó°Òµns do not itemize their taxes, and thus cannot receive tax benefits for their altruism.Ìý

YetÌýwe know ¾«¶«Ó°Òµns at all income levels are incredibly generous and want the agency to change the world around them. We also know thatÌýworkplace giving is the most efficient and effective way of providing that agency, simultaneously giving back while improvingÌýthe communities in which theyÌýlive and work.Ìý

But there’s a way to even the playing field by empowering taxpayers to donate to charityÌýon a pre-tax basis: with the Everyday Philanthropist Act, which seeks to empower working ¾«¶«Ó°Òµns to give to charity.Ìý

• On July 26, 2018, the Everyday Philanthropist Act, H.R. 6616, wasÌýfirst introduced in the House of Representatives, sponsored byÌýRep. Erik Paulsen (R-MN) with six co-sponsors,Ìýduring theÌý115th Congress.ÌýUnfortunately, that effort fizzled out.Ìý
• Luckily — nearlyÌýa year later to the day — on July 25, 2019, the Everyday Philanthropist Act (H.R. 4002)Ìýwas reintroduced in the House of Representatives during the 116th Congress (this session) by sponsorsÌýTom Suozzi (D-NY) andÌýVern Buchanan (R-FL),Ìýco-sponsored by 10 others. It was quickly referred to Ways and Means Committee, where it sits now.
• In the following days (as of today, August 2, 2021), for the first time in history, the Everyday Philanthropist Act, a Senate companion bill is slated to be introduced, sponsored by Tammy Baldwin (D-WI) andÌýBen Sasse (R-NE).Ìý

Specifically, the Everyday Philanthropist Act allows employers to offer certain employees a tax-advantaged flexible giving account, allowing employees to set aside up to $2,700 of their annual pretax earnings to make tax-deductible charitable contributions without having to itemize tax deductions.

In short, the bill would greatly increase the number of ¾«¶«Ó°Òµns who could take aÌýtax break through charitable donations. Indeed, research shows that 95 percent of working ¾«¶«Ó°Òµns would be afforded the same benefits of giving that only the wealthiest donors currently have.

“[The current tax code] establishes an unfair correlation between wealth and one’s ability and desire to give back, when in fact all ¾«¶«Ó°Òµns want to have an impact on their communities. The Everyday Philanthropist Act is a win for taxpayers, employers, charities, and Congress.”Ìý— The Greater Give

The Everyday Philanthropist ActÌýmeans:

• Millions more ¾«¶«Ó°Òµns couldÌýlower their taxesÌýthrough charitable giving.
• Employers could empower their employees to give back whileÌýreducingÌýpayroll taxes.
• Charities could increase donations andÌýimpact communitiesÌýin need.

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Get Involved

Join us as a champion of the Everyday Philanthropist Act:Ìý

1. toÌýthe Greater Give’s list of supporters.

2. ÌýtoÌýyour members of Congress and tell them you support the Everyday Philanthropist Act, the first step in redefining the way ¾«¶«Ó°Òµ gives back.Ìý

3. Share your support. TellÌýyour friends, family, and colleagues thatÌýyou support the Everyday Philanthropist Act and what it represents for donors and charitable giving. Be sure to tag ¾«¶«Ó°Òµ’s Charities onÌý, , and andÌýuse the hashtag #EverydayPhilanthropist so we can amplify your message.ÌýÌý