America Gives More Act of 2015
The components of the America Gives More Act of 2015 would provide immediate relief to communities across America by restoring and permanently extending three expired charitable giving incentives – food inventories, conservation easements, and the IRA rollover – as well as streamline the foundation excise tax, designed to provide needed resources to support the work of charitable nonprofits. The National Council of Nonprofits urges Congress to pass the America Gives More Act of 2015 as soon as possible.
Why It Matters
The components of the America Gives More Act are needed to promote and ensure support for the work of charitable nonprofits, especially when demand for nonprofit services continues to rise and donations are not keeping up with demand. Each incentive has proven to be effective, yet Congress has repeatedly let them expire, creating uncertainty around giving.
- The food donation tax deduction provision would raise the cap on giving and allow small businesses donating wholesome excess food to a qualified nonprofit to take the same enhanced tax deduction C corporations have been permitted since 1976.
- The enhanced tax deduction for conservation easement donations have helped America’s land trusts work with farmers, ranchers, and other modest-income landowners to increase voluntary land conservation by a third, to over a million acres a year when the tax incentive is in effect.
- The IRA charitable rollover option, which allowed individual taxpayers aged 70½ and older to donate up to $100,000 from their individual retirement accounts (IRAs) directly to charitable nonprofits, has provided needed support for the work of social service programs, religious organizations, arts and cultural institutions, schools, healthcare providers, and other charitable organizations — all of which benefit Americans across the country.
The America Gives More Act would also simplify the excise tax that private foundations pay, thereby making more funds available for the work of charitable nonprofits in communities.
Where We Stand
Charitable nonprofit organizations throughout the United States are dedicated to the public good; their work improves lives, strengthens communities and the economy, and lightens the burdens of government, taxpayers, and society as a whole. The National Council of Nonprofits supports existing, enhanced, and new tax and other incentives at the federal level that encourage individuals to volunteer their time and contribute money to the missions of nonprofits.
National Council of Nonprofits 2015 Public Policy Agenda
Status
The U.S. House of Representatives passed the America Gives More Act of 2015 on February 12, 2015 by a strong majority of 279 to 139. Using the same name as a similar bill that the House passed in July of 2014, the America Gives More Act of 2015 would restore and make permanent the IRA charitable rollover, the enhanced and expanded deduction of food inventories, and the expanded tax deduction to promote donation of land for conservation purposes. The National Council of Nonprofits now urges the Senate to pass this legislation, because for charitable nonprofits these tax incentives are needed now, and cannot wait. Read the March 20, 2015 letter to the Senate from the National Council of Nonprofits and other national nonprofits, and the April 6 blog posting, No More Excuses: Pass the America Gives More Act. On April 15, 2015, the National Council of Nonprofits issued comments on Federal Tax Reform, calling on the Senate to take up and pass the House bill.
In December 2014, the House considered and nearly passed the Supporting America’s Charities Act, which would have made permanent three charitable tax incentives contained in the America Gives More Act– the IRA Rollover, the enhanced deduction for donations of food inventories and donations of conservation easements.
The U.S. House of Representatives passed the America Gives More Act in July 2014 by a strong, bi-partisan vote of 277 to 130. The 113th Congress adjourned in December 2014 without enacting the legislation. Congress opted instead to pass the Tax Increase Prevention Act of 2014 (H.R.5771) which provides a short-term extension through the end of 2014 of dozens of expired tax provisions including the charitable incentives.
What Nonprofits Can Do
Click the button above for a few simple actions you can take to urge Congress to pass the America Gives More Act.
Additional Resources
- Nonprofit Letter to Senate Finance Committee Leadership, March 20, 2015
- Tax Policy Issues webpage, National Council of Nonprofits
- Nonprofit Colleague Organizations
- U.S. House Ways and Means Committee
- U.S. Senate Finance Committee
Latest News
U.S. Senators who don’t know how much charitable giving incentives help their constituents in a meaningful way are not likely to take action. When they hear nothing about the needs in their communities, they will do nothing to help.
That is why the nonprofit community is mobilizing this spring to raise awareness and grassroots action in support of the America Gives More Act (H.R. 644), the bill that passed the House in February and is stuck in the Senate awaiting consideration. The legislation would support the work of nonprofits in communities by restoring and making permanent three expired charitable giving incentives – the enhanced deductions for donations of food inventories and for land conservation easements, and the IRA rollover. The bill would also provide needed simplification to the excise tax that private foundations pay, thereby making more funds available for philanthropic purposes.
The grassroots effort now underway on the America Gives More Act is designed to call attention to the immediate needs in communities and to urge Senators to recognize that there is no legitimate reason to further delay enactment of the bipartisan bill. Nonprofits are urged to use “#Act4Good” in social media, as modeled in the photos above; learn more and Take Action Now.
“Act for good and help the people in our communities” is the urgent message that charitable nonprofits all over the country are communicating to U.S. Senators in the push to secure passage of the America Gives More Act (H.R. 644) this spring. The legislation would support the work of nonprofits in communities by restoring and making permanent three expired charitable giving incentives – the enhanced deductions for donations of food inventories and for land conservation easements, and the IRA rollover. The bill would also provide needed simplification to the excise tax that private foundations pay, thereby making more funds available for philanthropic purposes. After swiftly passing the House by a wide, bipartisan basis in February, the America Gives More Act has been set aside in the Senate as Senators have focused their discussions on comprehensive tax reform, discussions which most commentators presume will not result in a bill this year. The grassroots effort now underway on the America Gives More Act is designed to call attention to the immediate needs in communities and to urge Senators to recognize that there is no legitimate reason to further delay enactment of the bipartisan bill. Nonprofits are urged to learn more, read the latest blog of the National Council of Nonprofits, and Take Action Now.
In advance of comprehensive tax reform, both the House and Senate are taking action to pass more targeted tax-law changes, some of which relate to the support and operations of charitable nonprofits. On February 12, the House passed the America Gives More Act by a vote of 279 to 139. The legislation would reinstate and permanently extend three expired charitable giving incentives – food inventories, conservation easements, and the IRA rollover – as well as streamline the foundation excise tax. The Senate is not expected to take up the bill immediately, opting instead to focus for the time being on attempting to craft comprehensive reform legislation on a bipartisan basis. The Senate Finance Committee, however, has produced a package of 17 noncontroversial tax provisions that may be considered on the Senate floor in the coming weeks. One provision would require the Internal Revenue Service to notify exempt organizations before revoking exempt status for failing to file information returns, as required under the Pension Protection Act of 2006. This bill, known as the NOTICE Act (S.400), also would allow the IRS to retroactively reinstate tax-exempt status to nonprofits that do not receive notice of the need to file in time. Another of the provisions would provide an exception to the private foundation excess business holdings rules for certain philanthropic business holdings.
