S.317/H.R.801 Charitable Act

Impact on Libraries

This bill allows individual taxpayers who do not otherwise itemize their tax deductions an above-the-line deduction for charitable contributions, limited to one-third of the standard deduction allowed to such taxpayers (roughly $4,500 for individuals and $9,000 for couples).

This could have significant impact on donors and their willingness to donate as well as impacting libraries and our paperwork requirements (eg more donors may request annual statements of giving, even if they are below the mandated $250 donation that triggers the automatic receipt).

This deduction was first introduced via the CARES Act, allowing a $300 deduction. That was allowed to expire in 2022. These bills were introduced in 2023-24 and died in committee (S.566/H.R.3435).