Yesterday, Congressman Jim Sensenbrenner reintroduced the Charitable Giving Act, legislation that would support and encourage charitable giving by carving out the limitations imposed on charitable deductions. 

In January 2013, the “Pease rule” reinstated and made permanent the overall limitation on all itemized deductions for those with adjusted gross income above the statutory limit. This limits itemized deductions for charitable donations, de-incentivizing individuals from contributing to worthwhile organizations such as hospitals, veterans’ organizations, universities, and disaster relief services. 

Congressman Sensenbrenner: “Non-profits and charitable organizations are the country’s safety nets that provide services and funding beyond what our financially-limited government programs can provide. These organizations heavily rely on the generosity of private donors, and they, as well as the countless people and causes they serve, would suffer from the continued upholding of the Pease rule.”