This bill allows employers to offer certain employees a tax-advantaged flexible giving account as a fringe benefit. Flexible giving accounts allow 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.
The Everyday Philanthropist Act (S.3191), a bipartisan bill to incentivize charitable giving by providing Americans with an effective tax break, has been introduced in the U.S. Senate by Senators Ben Sasse (R-NE) and Tammy Baldwin (D-WI). Companion legislation (H.R.4585) was introduced in the U.S. House of Representatives by Congressmen Tom Suozzi (D-NY) and Vern Buchanan (R-FL) on July 20, 2021.
The Tax Cuts and Jobs Act (TJCA) was signed into law in 2017. The act nearly doubled the standard deduction and eliminated or limited many itemized deductions. The effect of the tax reform was that many people who used to itemize on Schedule A took the standard deduction instead.
Whether deductions eliminated by the TCJA or other changes have a negative impact on you depends on your personal financial situation and the types and amounts of deductions you might be able to take.
The passage of the Everyday Philanthropist Act
will help counteract some of the negative effects
the TJCA has had on charitable giving.
The Federal Government has a payroll deduction program similar to the proposed Everyday Philanthropist Act. The Combined Federal Campaign (CFC) is available to all Federal workers whether they be military, civilian, or postal. This year, the CFC is celebrating its 60th anniversary. Since its inception, the CFC has raised more than $8.5 billion for charities and people in need.
A similar program for large, international corporations is provided by Benevity. According to their website, payroll giving lets people give as they earn and is by far the easiest way for them to give to nonprofits. The Greater Give says working Americans should feel inspired to give back, and that their employers should have the tools and resources to help them give.
“The Everyday Philanthropist Act would help people who give currently to give more and encourage those who don’t already give to start,” says Dan Rashke, Founder of The Greater Give. “It would revolutionize the way Americans give back and could have incredible impacts on those in our community who are in need.”
SOURCES (accessed 12/11/2021)
H.R.4585 – 117th Congress -2022)
https://www.congress.gov/bill/117th-congress/house-bill/4585?s=1&r=30
S.3191 – 117th Congress (2021-2022)
https://www.congress.gov/bill/117th-congress/senate-bill/3191?s=1&r=2
Tax Deductions That Went Away, Starting With 2018 Taxes
https://www.investopedia.com/tax-deductions-that-are-going-away-4582165
Combined Federal Campaign, You can be the face of change
https://givecfc.org
Celestial Manna CFC Posters, Department of Defense
https://drive.google.com/file/d/14dlKVF9dBqNR8ZYqBs7FNgapIsCXtWdg/view?usp=sharing
Celestial Manna CFC Posters, Civilian Federal Workers
https://drive.google.com/file/d/16UEHrrIJ3jxcGkWEKBhVAiCs5o6xX_64/view?usp=sharing
Celestial Manna CFC Posters, Postal Workers
https://drive.google.com/file/d/1cgHfOjcSlaldXr9Y5S3sQ0o8GYf_x1Qk/view?usp=sharing
Benevity Website, Payroll Giving Lets People Give as They Earn
https://benevity.com/products/payroll-giving
The Greater Give Website
https://thegreatergive.org/about-us/
The Everyday Philanthropist Act Drops in the US Senate
https://www.tasconline.com/newsroom/
David Robert Lambert 
Leave a comment