Sen. Lankford's Charitable Act Draws Bipartisan Support - Here's What It Would Do

WASHINGTON – A move on Capitol Hill could provide Americans a larger tax deduction when they give to places of worship and other non-profit organizations.

Republican Sen. James Lankford introduced the bipartisan Charitable Act to motivate giving, and in turn, help organizations thrive.  

For Lankford, getting this act passed through Congress soon is personal. He worked in non-profits for close to 20 years, seeing firsthand how much charities rely on our donations and time.

He admits, however, that the spirit of giving has dwindled for many Americans in today's economy.

"We want to create an environment where we tell people the safety net of the world is not the federal government. It's the families first, our churches and nonprofits," said Lankford.
 
In order to get people to believe that message, Lankford's bill aims to give more to those who give back, especially to worship centers, charities, and other nonprofits of choice. 

"I'm very proud of how many Americans actually give to nonprofits, but we want people to actually be able to give a little bit more," said Lankford. "Right now, the average American gives about 1.7% of their income to a nonprofit –  1.7%. That's not a lot."
 
While he would like to see that number increase, Lankford knows certain changes must come first. 

The cap on federal charitable deductions for those who don't itemize would be raised to around $4,600 per individual, up from the previous cap of $300."

Still, he stresses the importance of itemizing for maximum benefit.  "That 9% of the country actually itemize – we're trying to create an incentive for people that don't itemize on their taxes," said Lankford.

An American Bible Society study shows the number of Americans donating to charities has dropped almost 10% from last year.
 
Its findings also reveal that American households with the lowest income levels actually give the most to a church or charity, with their donations exceeding 10% of their income.
 
"Imagine for a moment if you're a lower middle-class donor with that spirit of generosity, but you don't have the financial wherewithal," said Samuel Rodriguez, Senior Pastor of New Season Church in California. "All of a sudden you have an incentive." 

Rodriguez believes if this bill becomes law, it would lighten the load for members in his congregation, eventually creating a sense of unity beyond the church doors.
 
"If you have a tithing policy or a tithing and offerings policy, whatever it may be, it will definitely increase it, enabling churches to become even more transformative as it pertains to impacting the communities around them," said Rodriguez.
 
Lankford believes a strong misconception about charitable giving is that larger donations matter most.

"Nonprofits are very dependent on a thousand small-dollar donors because those small-dollar donors not only will give them $20 to be able to help, but they also become a volunteer base," he said.

Teaming with Democrat Sen. Chris Coons, Lankford says hundreds of organizations, including the YMCA, Goodwill, and the American Heart Association, are supporting the effort.

Introduced last year, the Charitable Act received renewed support this month. It came in the form of a letter from the Charitable Giving Coalition, signed by 470 organizations from all 50 states, urging Congress to pass the bill.

While Lankford tells CBN News he doesn't expect a vote before the new year, he's pushing to get enough bipartisan support in the next Congress to get the act passed.