OUR THOUGHTS ON:

America Gives More: The Charitable Nation

Not-for-Profit

By Amy Kletch

Americans are among the most charitable people in the world.  Their donations of money, food and clothing during hard times provide the means necessary for charities and foundations to help both individuals and communities across the United States.  Provisions within the current tax code promote giving; and current legislation passed by the House seeks to extend and make permanent a number of the tax deductions for charitable contributions. 

The legislation is known as the America Gives More Act of 2014 (the “Act”) and was introduced on May 22, 2014, by Representative Tom Reed II [R-NY-23].  The Act includes the following provisions:

  • Expanding and making permanent the charitable deduction for contributions of food inventory by all businesses and farmers. 
  • Continued donations to charities from Individual Retirement Accounts without a tax penalty.
  • Making permanent the deduction for contributions of conservation easements.
  • Simplifying and lowering the excise tax on private foundations.
  • Extending the tax deadline for charitable contributions from December 31 to April 15.

On July 17, Representative Dave Camp, Chairman of the Committee on Ways and Means, issued a floor statement in which he expressed hope that by passing the Act, Americans will be encouraged to give more, and charities, nonprofits, foundations and schools will be able to continue to serve those who need it most. That same day, the Obama Administration issued a Statement of Administrative Policy, stating its strong opposition to the Act and said that senior advisors would recommend a veto should the Act be presented to the President for his signature.  Similar bills introduced in the recent past have also lacked bipartisan support and failed to become law.

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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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