As dedicated fundraisers, we witness firsthand the profound impact of charitable giving in our communities. The Charitable Act (S. 317 / H.R. 801) seeks to restore and expand the charitable deduction for non-itemizers, a proven incentive that previously generated an estimated $74 billion in additional giving from middle-income Americans. While the House-passed bill includes a modest above-the-line deduction (Section 110112), it falls short of the comprehensive support our communities need. We urge Congress to adopt the full provisions of the Charitable Act in the final budget reconciliation bill to bolster local nonprofits and the vital services they provide.

The current House bill's limited charitable deduction for non-itemizers does not adequately address the needs of our sector. Moreover, other provisions in the bill could adversely affect nonprofits' operations and tax-exempt status. As AFP members committed to ethical fundraising and community support, we call on Congress to: • Include the full Charitable Act in the final budget reconciliation to maximize charitable giving incentives. • Remove or amend provisions that could hinder nonprofit effectiveness and sustainability. Your voice is crucial in ensuring that legislation supports, rather than undermines, the nonprofit sector.

The bipartisan Charitable Act offers a unique opportunity to enhance charitable giving across all income levels. Its inclusion in the final budget reconciliation bill would: • Reinstate a universal charitable deduction, encouraging broader public participation in philanthropy. • Support nonprofits facing declines in small-dollar donations, ensuring they can continue essential services. We appreciate the House's initial steps but believe that adopting the full Charitable Act is necessary for meaningful impact. Let's work together to advocate for policies that truly strengthen our communities.