LegislativeThe Council stays apprised of current legislation that affects charitable-giving and foundations, while keeping legislators updated on concerns related to foundations and charitable giving. The ICoF strives to partner with legislators on issues that benefit Iowa's citizens.
The Charitable Giving Relief Act
Charitable Deduction for NonitemizersBackground: In 1986 Congress eliminated the standard deduction for charitable contributions. Extending the charitable deduction to the more than 84 million income tax filers who do not itemize deductions has been a priority for many charitable organizations since then. Nonitemizers contributed $9.5 billion to charity in 1985, when they were permitted to deduct 50 percent of their contributions. The following year, the deduction was increased to 100 percent, and giving by nonitemizing taxpayers increased 40 percent, to $13.4 billion. Repeal of the standard deduction for charitable contributions was effective in 1987.
Legislative History: Bills were introduced in the 105th and 106th Congresses to restore the charitable deduction for taxpayers who claim the standard deduction. In 1999, four members of the House Ways and Means Committee – Phil Crane (R-IL), William Coyne (D-PA), Wally Herger (R-CA) and Karen Thurman (D-FL) – introduced a bill permitting individuals who do not itemize to deduct half of their annual charitable contributions in excess of $500. A version of the bill was included in the 1999 tax reconciliation bill vetoed by President Clinton. President Bush championed a nonitemizer deduction throughout his campaign.
Status: In January 2001, Senate Finance Committee member Phil Gramm (R-TX) introduced S. 35, which contains a provision that would phase in a 100-percent charitable deduction by 2006. Representative Crane introduced the Charitable Giving Tax Relief Act, H.R. 777, on February 28, which allows a 100-percent charitable deduction up to the amount of the standard deduction. A modified version of this proposal was included in H.R. 7, the Community Solutions Act, which the House passed in July 2001. In 2002 and 2003, nonitemizers would be allowed to deduct up to $25 in charitable gifts ($50 on joint returns). In 2004, 2005 and 2006, the maximum deduction would be increased to $50 ($100 for joint returns). In 2007, 2008 and 2009, the maximum deduction would increase to $75 ($150 for joint returns). Finally, beginning in 2010, the maximum deduction would rise to $100 ($200 for joint returns). The total cost of the Thomas provision over ten years is $6.37 billion.
Senators Santorum (R-PA) and Lieberman (D-CT) also included a version of the nonitemizer deduction in S. 1924, Charity Aid, Recovery and Empowerment (“CARE”) Act of 2002. Under this bill, nonitemizers would be allowed to deduct $400 in charitable gifts ($800 for joint returns). This bill sunsets at the end of 2003.
Council on Foundations position: Supports the proposal.
February 2002
Leave a Legacy™LEAVE A LEGACY™ Iowa is sponsored by the Iowa Planned Giving Councils in partnership with The Iowa Council of Foundations and the Iowa Chapters of the National Society of Fund Raising Professionals (NSFRE). LEAVE A LEGACY™ is a national initiative sponsored in Iowa by a coalition of community-based programs throughout the state as an ongoing educational campaign to encourage residents of Iowa and bordering communities to plan estate gifts to nonprofit organizations in their wills or other estate planning instruments.
LEAVE A LEGACY™ Iowa is a statewide collaboration of non-profit organizations, grant makers, professional advisors, community leaders and a variety of media outlets. The LEAVE A LEGACY™ Iowa network is organized and directed by county and regional steering committees and a statewide board of directors. The mission of the Iowa chapter is to preserve and improve the quality of life in our communities sustained by people, programs and services of charitable non-profit organizations.
Participation in LEAVE A LEGACY™ Iowa is encouraged from all professional advisor associations and their members. Benefits to partners include:
- Listing on the LEAVE A LEGACY™ Iowa Website
- Web site link from the LAL Iowa Website
- Listing in a full-page ad in the Des Moines Register
- Authorized use of the LAL logo
- Free supply of LAL brochures
- Inclusion in the professional advisory network
- Discount on all LAL Iowa sponsored educational seminars
- Ability to become authorized speakers in the LAL Iowa Speakers Bureau
Promotion of PhilanthropyThe ICoF promotes philanthropy through communication and public education and provides information on starting foundations and creating funds.