Natural Disasters Underscore Need for Charitable Giving Incentives

Recent flooding will have a lasting impact on Vermont and neighboring regions. While FEMA funds and other relief will be critical to our long-term recovery, nonprofit organizations, alongside community members, are often among the first to respond in emergencies. Beyond addressing immediate needs, nonprofits play an essential role in supporting those impacted by disasters to recover and access the help they need, from shelter to mental health services.

Ensuring nonprofits have the resources they need to respond effectively in times of crisis is essential. When we have strong nonprofits, we have strong communities. Unfortunately, today, the share of people giving has dropped to just about 50% from 67% in 2002, and more than 70% of nonprofits anticipate giving will decline or remain flat in 2023. Emerging from a pandemic amidst economic uncertainty, rising costs, increased demand for services, and more frequent natural disasters, nonprofits need all the support they can get – including from individual giving.

What’s the solution?

Charitable giving incentives provide a benefit to those investing in their communities, and make it easier for those who want to help to make a contribution.

Congress can help alleviate some of the funding difficulties the sector is facing by enacting the Charitable Act (H.R. 3435/S. 566). The legislation would empower taxpayers to give back to their communities by granting a tax incentive of roughly $4,600 for individuals/$9,200 for couples regardless of whether they claim other itemized deductions. This would incentivize giving to the work of charitable organizations in local communities, encourage taxpayers to give more to the missions they support, and effectively reduce demands on governments.


What Nonprofits Can Do

Help protect the charitable giving incentive that supports the work of nonprofits in our communities now and in the future by contacting your Senators and Representatives to tell them how the giving incentive translates into impact in your community. 

Urge Congress and the Administration to renew and significantly increase the cap on the universal charitable (non-itemizer) deduction, permit individuals who itemize to deduct charitable donations up to 100 percent of their adjusted gross income, and allow corporations to deduct charitable donations up to 25 percent of taxable income.