U.S. Representative Erik Paulsen (R-MN) recently introduced the Everyday Philanthropy Act (H.R. 6616), a bill that would create "Flexible Giving Accounts" for employers to offer their employees as part of their fringe benefits.

If H.R. 6616 is enacted, the Flexible Giving Accounts would enable employees to use their pre-tax earnings to make tax-free charitable donations. Once enrolled, employees would identify their charities of choice and be able to contribute up to $5,000 annually.

Rep. Paulsen‘s bill is seen by some as a possible solution to the projected decline in giving due to the Tax Cuts and Jobs Act's doubling of the standard deduction. As a consequence of this change, it is estimated that the percentage of American taxpayers who itemize and could benefit from the charitable deduction will drop significantly, from 30 percent to 11 percent of all taxpayers.

While H.R. 6616 would incentivize new giving, CASE and our charitable community partners continue to build support for the Universal Charitable Giving Act (H.R. 3988/S. 2123) and Charitable Giving Tax Deduction Act (H.R. 5771), bipartisan bills that would expand and increase giving to a greater extent.

For the latest developments on charitable giving legislation, please visit the CASE Advocacy Action Center and join the CASE Advocacy Network.

This article is from the August 2018 BriefCASE issue.