Leaders from the nonprofit sector recently testified before the Senate Finance Committee during a hearing on "Examining Charitable Giving and Trends in the Nonprofit Sector." The hearing focused on the charitable gifts that provide nonprofits with the necessary resources to serve those in need.
Ahead of the finance committee hearing, CMF was in contact with Senator Debbie Stabenow’s office sharing data and highlighting how Michigan philanthropy has supported our communities amid the pandemic through collaborative and innovative partnerships.
During the hearing, committee members acknowledged the importance of charitable giving, especially during the pandemic. Committee members called for enhanced and expanded charitable giving incentives, like restoring the above-the-line tax deduction that allows nonitemizers to deduct charitable donations on their federal taxes.
The Universal Giving Pandemic Response and Recovery Act restores the tax deductions and incentives giving which provides resources for charitable and faith-based organizations to continue providing vital services to families, workers and communities, especially those critically impacted by the ongoing pandemic.
CMF continues to advocate for the restoration and expansion of the charitable deduction and will highlight the importance of charitable giving in conversations with policymakers next week during this year’s virtual Foundations on the Hill (FOTH).
Dan Cardinali, president and CEO of Independent Sector (IS), testified in the recent hearing, underscoring how congress and the charitable sector could work together to strengthen charitable giving.
“I urge you, in the strongest possible terms, to restore the nonitemizer charitable deduction quickly, and to significantly increase or eliminate the cap in order to strengthen our social bonds and to help generate the scale of giving America needs at this moment,” Cardinali said in his testimony.
In addition to the charitable deduction, committee members and nonprofit leaders discussed restoring the expanded child tax credit and employee retention tax credit and enacting the Legacy IRA Act.
Kyle Caldwell, president and CEO of CMF, recently engaged in a conversation with Senator Stabenow and several leaders from the nonprofit sector to discuss the Legacy IRA Act, which would provide greater flexibility to seniors who make charitable contributions through their IRAs by expanding the age threshold, raising the annual IRA Charitable Rollover and allowing seniors to make tax-free IRA charitable distributions.
The meeting provided an opportunity to emphasize the need for the provisions to be included in the Senate’s retirement bill.
Next week, April 5-7, members of our community of philanthropy will be engaging with policymakers at FOTH to deepen connections with policymakers, discuss topics that were lifted up at the hearing and more.
Watch the full Senate Finance Committee hearing.
Register for Foundations on the Hill.