Would you give more to charity if a tax break were certain?

Fellow taxpayers, would having a charitable tax deduction make you more likely to give? The Charitable Giving Coalition (CGC) is advocating for a return of the charitable deduction for all taxpayers, not just those who itemize. This change could give more of us the opportunity to take advantage of tax savings, potentially encouraging more generosity across all income levels. But would having that deduction inspire you to give more to causes that matter most?

Here’s why this matters: charitable giving in the U.S. has been on the decline, with fewer than 50% of households making donations in 2018—down from 66.2% in 2000, according to Indiana University's Lilly Family School of Philanthropy. A key reason for this drop is the 2017 tax reform, which doubled the standard deduction and reduced the number of people itemizing their deductions. Fewer itemizers meant fewer people claiming charitable giving deductions. However, during 2020 and 2021, Congress temporarily allowed non-itemizers to deduct donations, and the results were clear—over 42 million taxpayers took advantage of this, contributing $10.9 billion in 2020 alone.

In a 9-page letter to Chairman Jason Smith of the House Ways and Means Committee, dated October 8, 2024, the CGC is urging Congress to permanently reinstate this deduction for non-itemizers in the 2025 tax reform package. The CGC believes this move would democratize charitable giving, encouraging more participation and help reverse the troubling decline in donations. With the potential for expanded tax incentives, would this motivate you to donate more?