The Everyday Philanthropist Act has been re-introduced for consideration during the 117th Congress (2021-22). Sponsored by House Ways & Means Committee members Tom Suozzi (D-NY) and Vern Buchanan (R-FL), this bi-partisan legislation (H.R. 4585) aims to revolutionize employee giving and incentivize every American to become an Everyday Philanthropist.
Historically, only a small percentage of Americans – those who itemize their tax returns – are eligible to take their charitable donations as tax deductions…a strategy that has overwhelmingly benefited the wealthiest in our country. The Everyday Philanthropist Act would afford a similar opportunity for ALL working Americans through the creation of a Flexible Giving Account, which provides businesses with an easy way to encourage employee giving. This bill is also essential for charitable organizations across the country who rely on giving to do their good work.
Recently enacted provisions establishing a “partial/universal” above the line deduction extends and modifies the maximum amount that individuals are permitted to write-off, whether they itemize or not. While we applaud this forward movement in charitable reform legislation, our country needs a long term, fiscally sound and compliant friendly solution for all.
The Everyday Philanthropist Act would revolutionize employee giving through empowering employees of all tax brackets to give to the charity of their choice, reducing the employer’s payroll taxes and cultivating a movement of shared responsibility between employers and employees.
*The Coronavirus Aid, Relief & Economic Security (CARES) Act encouraged Americans to contribute to charitable organizations by permitting a $300 deduction of cash contributions for 2020 [Public Law 116-136]; The Consolidated Appropriations Act continued the $300 deduction through 2021 and clarified the allowance for married couples filing jointly [Public Law 116-260].