What They Are Saying: Lankford Delivers Major Victory for Charitable Giving with Key Tax Provision in One Big Beautiful Bill

WASHINGTON, DC — US Senator James Lankford (R-OK), Chairman of the Senate Values Action Team and a member of the Senate Finance Committee, secured an important policy provision for charitable giving in the One Big Beautiful Bill that passed the Senate and was signed into law last week. Lankford led efforts to restore and make permanent a tax deduction for non-itemizers up to $2,000 per couple. This change will enable more Americans to support churches, charities, and nonprofits that serve the most vulnerable.

The provision restoring the non-itemizer deduction has earned strong support from leading charitable, faith-based, and nonprofit organizations nationwide, including the Charitable Giving Coalition, Faith and Giving, Christian Alliance for Orphans (CAFO), the Nonprofit Alliance, the Association of Fundraising Professionals, the Association of Art Museum Directors, the National Council of Nonprofits, the League of American Orchestras, the National Association of Charitable Gift Planners, Philanthropy Southwest, the Evangelical Council for Financial Accountability (ECFA), Mental Health Matters (MHM), the Council for Advancement and Support of Education (CASE), United Philanthropy Forum, the Ethics and Religious Liberty Commission (ERLC), and the Council for Christian Colleges and Universities (CCCU).

“Permanently restoring and expanding the charitable deduction is a powerful policy change that will encourage additional giving,” said Brian Flahaven, Chair of the Charitable Giving Coalition. “Continuing to strengthen the charitable deduction in the Senate bill sends a clear message that encouraging private philanthropy is a national priority. The Coalition is immensely grateful to Senators James Lankford, Chris Coons, and our other bipartisan Senate champions for their unwavering commitment to America’s charities and the communities they serve.”

“Faith and Giving is deeply grateful to Senator Lankford, Senate Finance Chairman Mike Crapo, and their colleagues for including a more robust charitable deduction for non-itemizers in the reconciliation package,” said Brian Walsh, Executive Director of Faith and Giving. “Giving by individuals is the financial lifeblood of many thousands of American faith-based organizations. Yet since 2018 giving to religion has fallen billions of dollars short of keeping pace with inflation. The temporary non-itemizer deduction incentivized substantial additional giving in 2020 and 2021. This larger and permanent non-itemizer charitable deduction will help stimulate even more giving by lower- and middle-income taxpayers to congregations and other faith-based organizations across the country.”

“To honor and incentivize American generosity are among the most consequential investments we can make as a nation. Private giving fuels so much of what makes life good and beautiful in our communities – from education, arts, and the great outdoors to houses of worship that nurture faith, family, relationships and character,” said Jedd Medefind, President of the Christian Alliance for Orphans (CAFO). “Private giving also undergirds virtually every effort to give a hand-up to the hurting – both via financial support and, critically, in building communities of supporters whose hearts and volunteer service follow their giving. This is truly America at her best.”

“The Nonprofit Alliance applauds the strong bipartisan support for the Charitable Act and Senator Lankford’s leadership on this important legislation to establish a permanent charitable deduction of up to $2,000,” said Shannon McCracken, President and CEO of The Nonprofit Alliance. “While giving from itemizers has continued to increase over the last several years, smaller contributions from everyday givers have declined. It is critically important to democratize giving and engage more Americans in the act of giving to support and sustain organizations across diverse cause areas – and the Charitable Act does that.”

“Since the temporary charitable deduction for non-itemizers was allowed to expire in 2022, the Association of Fundraising Professionals’ Fundraising Effectiveness Project has reported a sustained decline in gifts from small donors, with a drop of 8.9% in 2024 alone,” said H. Art Taylor, President and CEO of the Association of Fundraising Professionals. “This trend of continued reliance solely on large-dollar donors is unsustainable for a healthy, resilient, charitable sector. A permanent charitable deduction for non-itemizers will help reverse this decline by empowering and incentivizing everyday Americans to give, ensuring that charitable giving remains broad-based, diverse, and reflective of all communities. On behalf of our more than 26,000 fundraising professional members that raise more than $115 billion annually for charities, we thank Senator Lankford and our other bipartisan Congressional champions for their leadership in championing the original Charitable Act to restore this proven giving incentive.”

“The Association of Art Museum Directors thanks Senator Lankford for his tireless work to restore a meaningful tax incentive for all Americans to be generous,” said Christine Anagnos, Executive Director of the Association of Art Museum Directors. “Donations to art museums make possible free and reduced admissions, educational programs, and a host of community services. The permanent reestablishment of a significant tax deduction for gifts made by people who do not itemize will encourage the participation of donors from every economic and demographic category and ensure that charitable service extends to every sector.”

“Nonprofits are the backbone of this country, providing critical support to improve local communities and save live,” said Diane Yentel, President and CEO of the National Council of Nonprofits. “These vital organizations are led by our neighbors who step up to fill the gaps unmet by government or the private sector. On behalf of the National Council of Nonprofits’ network of more than 33,000 nonprofit organizations, I applaud Senator Lankford’s leadership in enacting a universal charitable deduction to provide the American people with a new way to support the essential work of nonprofits and their ability to serve local communities.”

“Charitable giving provides essential support for the live performances and educational programming provided by orchestras and nonprofit arts organizations nationwide,” said Simon Woods, President and CEO of the League of American Orchestras. “We are grateful to Senator Lankford for his leadership in advancing the permanent non-itemizer charitable deduction, which will fuel increased generosity by today’s donors and incentivize future generations to invest in the work of the nonprofit sector.”

“We applaud Senator Lankford and his colleagues for including a permanent, non-itemizer charitable deduction in their reconciliation package,” said Michael Kenyon, President and CEO of the National Association of Charitable Gift Planners. “The deduction would be paid for by a modest floor on the itemized charitable deduction that will ensure all taxpayers are incentivized to give money away. We encourage Congress to ensure this increased and permanent deduction is included in the final version of the bill as we know once a donor starts to support a cause or organization, they are much more likely to continue giving in the future, instilling a habit of philanthropy that will drive more dollars to charity for years to come from a new generation of givers.”

“The charitable deduction for non-itemizers is a vital step toward strengthening philanthropy by providing tax incentives that can help reverse declines in charitable giving and engagement,” said Tony Fundaro, President and CEO of Philanthropy Southwest. “Members of Philanthropy Southwest continue to face unprecedented needs in their communities, and the inclusion of this provision in the tax bill encourages giving at all levels, empowering more Americans to support nonprofits tackling our most pressing challenges. We are grateful to Senator Lankford for championing generosity in our communities, his leadership on the Charitable Act, and his commitment to supporting the charitable sector.”

“I thank Senate Finance Committee Chairman Mike Crapo for including a non-itemizer charitable deduction in this legislation, and I greatly appreciate the work of leaders like Senator James Lankford and Senator Chris Coons to urge that this common-sense provision be made more robust and permanent,” said Michael Martin, President and CEO of the Evangelical Council for Financial Accountability (ECFA). “America is well-served by supporting habits of giving among all taxpayers—regardless of whether they itemize on their tax forms or not.”

“I commend the efforts of policymakers who recognize the importance of making the charitable deduction permanent for non-itemizers,” said Dan Cosgrove, President and CEO of Mental Health Matters (MHM).“Encouraging generosity across all taxpayers strengthens our communities and fosters a culture of giving that benefits everyone. This provision ensures that acts of charity are rewarded, regardless of tax filing status, promoting fairness and compassion in our tax system.”

“For more than a century, the charitable deduction has played a vital role in encouraging Americans to support the missions of schools, colleges, universities, and charitable organizations across the nation,” said Sue Cunningham, President and CEO of the Council for Advancement and Support of Education (CASE). “Yet, access to this incentive has long been limited to those who itemize their tax returns. The Senate’s proposal in the budget reconciliation bill to make the charitable deduction available to all taxpayers is a transformative step. If enacted, we believe that it would broaden participation in giving and strengthen the capacity of institutions to fund scholarships, support students, advance research, and serve their communities. We commend Senator James Lankford for his leadership and thoughtful engagement in making this a priority in the reconciliation bill, and we thank Senator Chris Coons and the bipartisan coalition of more than 20 Senators and 60 House members who continue to champion charitable giving as a cornerstone of civic life.”

“As a proud partner in advocating for this critical policy, United Philanthropy Forum and our network of nearly 100 philanthropy-serving organizations have long championed modernizing giving incentives,” said Deborah Aubert Thomas, President and CEO of the United Philanthropy Forum. “Making the deduction permanent will create lasting pathways for everyday Americans to invest in the nonprofits that anchor their communities—from food banks to youth programs to places of worship. We thank Senator Lankford and colleagues for their leadership in ensuring that charitable giving remains a cornerstone of American civic life and accessible to all.”

“Southern Baptists generously give to support missions, ministries, and most importantly, the works of their local church in commitment to the Great Commission,” said Brent Leatherwood, President of the Ethics and Religious Liberty Commission. “Recognizing the importance of charitable giving, Southern Baptists have consistently called for the government to implement policies that incentivize charitable giving to fuel these services. The ERLC is grateful for Senator Lankford’s tireless effort to enact a robust universal charitable deduction to encourage all taxpayers, including those that do not itemize their returns, to give generously.”

“The Council for Christian Colleges and Universities is deeply grateful to the Senate for including an increase to the universal charitable deduction in the current reconciliation bill,” said the Council for Christian Colleges and Universities. “Our faith calls us to give — and our students learn to live generously by seeing that even small gifts can make a lasting difference. A universal charitable deduction doesn’t just support Christian higher education — it fosters a culture of generosity that supports communities. By expanding this deduction and ensuring inclusion in the final bill, the Senate is helping to sustain faith-based higher education for the next generation.”

Background

Lankford remains the leading voice in the Senate working to protect and expand charitable giving. In 2023, he introduced the bipartisan Charitable Act with Senator Chris Coons (D-DE) to restore and strengthen the non-itemized deduction for charitable contributions, allowing all taxpayers to deduct donations regardless of whether they itemize.

He also introduced the Safeguarding Charity Act to protect the independence of tax-exempt organizations from burdensome federal regulations. The bill clarifies that tax-exempt status does not constitute federal financial assistance, shielding churches, nonprofits, and private schools from costly and unnecessary government overreach.

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