The Honorable Chuck Schumer, Majority Leader
U.S. Senate
S-221, The Capitol
Washington, D.C. 20510
The Honorable Mitch McConnell, Republican Leader
U.S. Senate
S-230, The Capitol
Washington, D.C. 20510
The Honorable Nancy Pelosi, Speaker
U.S. House of Representatives
H-232, The Capitol
Washington, D.C. 20515
The Honorable Kevin McCarthy, Republican Leader
U.S. House of Representatives
H-204, The Capitol
Washington, D.C. 20515
November 2022
Dear Majority Leader Schumer, Republican Leader McConnell, Speaker Pelosi, and Republican Leader McCarthy:
Leadership 18 thanks you for your ongoing commitment to encourage and empower Americans to support their communities through charitable giving. We urge you to support the renewal and expansion of the universal charitable deduction for non-itemizing taxpayers.
In 2020, Congress enacted a temporary non-itemizer deduction on charitable donations in the CARES Act. It included a $300 cap for individuals and a $600 cap for couples. Data from the Association for Fundraising Professionals led Fundraising Effectiveness Project (FEP) showed that the non-itemizer deduction incentivized charitable giving. Unfortunately, the deduction expired at the end of 2021 and inflation is blunting the impact of increased giving. Data just released from FEP comparing the first half of 2022 with the first half of 2021 show the negative impact of the economy and the real-life impact of the expiration of the universal charitable deduction. There has been a collapse in the number of small-gift supporters with 17 percent fewer donors giving $100 or less and eight percent fewer donors giving between $101-$500.
The bipartisan, bicameral Universal Giving Pandemic Response and Recovery Act (S. 618, H.R. 1704) would help address some of these challenges by restoring and extending the universal charitable deduction. The legislation would raise the cap and extend the availability of the deduction through the 2022 tax year among other changes to support charities and the communities they serve. This legislation also enjoys broad public support. Polling released in September 2022 from Independent Sector found 85 percent of Americans support permanent restoration of UCD for non-itemizers and 77 percent support expanding the deduction cap to $4,000.
Leadership 18 is an alliance of CEOs responsible for leading some of the country’s largest and most well-respected charities, nonprofits, and faith-based organizations. As a group, member organizations have in the last two decades served over 400 million people, with 42.7 million staff and volunteers, and represent $80 billion in total revenue. We are a community of leaders who share a profound commitment to ensuring all people can contribute to a vibrant America, and with opportunity and effort, can live their lives to their fullest potential.
In these difficult economic times, the universal charitable deduction ensures that those who can support their communities financially, can do so without hurting their own pocketbook. It is only due to the generosity of our donors that charitable nonprofits can fulfill their missions and provide services to individuals and families across the nation. Leadership 18 offers our continued support and urges you to include the renewal and expansion of the universal charitable deduction through 2023 or beyond in any year-end tax package.
Sincerely,
Leadership 18
(CEO Signers Below)
Karen E. Knudsen
Chief Executive Officer
American Cancer Society
Nancy Brown*
CEO
American Heart Association
Gail McGovern*
President & CEO
American Red Cross
Artis Stevens
President & CEO
Big Brothers Big Sisters of America
Jim Clark
President & CEO
Boys & Girls Clubs of America
Sister Donna Markham*
President & CEO
Catholic Charities USA
Jim Balfanz
CEO
City Year
Sofia Chang
CEO
Girl Scouts of the USA
Stephanie J. Hull*
President & CEO
Girls Inc.
Steven C. Preston
President & CEO
Goodwill Industries International, Inc.
Jonathan Reckford*
President & CEO
Habitat for Humanity International
Eric D. Fingerhut
President & CEO
The Jewish Federations of North America
Charlotte Haberaecker
President & CEO
Lutheran Services in America
Schroeder Stribling
President & CEO
Mental Health America
Ramsey Alwin
President & CEO
National Council on Aging
Commissioner Kenneth G. Hodder
National Commander
The Salvation Army
Jody Levison-Johnson
President & CEO
Social Current
Angela F. Williams*
President & CEO
United Way Worldwide
Mike King
President & CEO
Volunteers of America
Suzanne McCormick
President & CEO
YMCA of the USA
Margaret Mitchell
CEO
YWCA USA
*Executive Committee Member