Buchanan introduces bipartisan tax break bill for charitable giving

U.S. Rep. Vern Buchanan (R-FL) recently unveiled a bipartisan bill to encourage tax-free charitable giving from Americans.

“Everyday Americans are the foundation of charitable giving across the country,” said Rep. Buchanan, a senior member of the U.S. House Ways and Means Committee, which has jurisdiction over tax policy. “This is a commonsense approach to help Americans give to their favorite charities by providing them with an effective tax break.”

Rep. Buchanan on July 25 introduced the Everyday Philanthropist Act, H.R. 4002, with cosponsor U.S. Rep. Tom Suozzi (D-NY) to permit employees to set aside up to $2,700 per year, on a pre-tax basis, to give to the charities of their choice by establishing Flexible Giving Accounts (FGAs).

As a new employee benefit established under H.R. 4002, FGAs would function much like flexible spending accounts (FSAs), health savings accounts (HSAs), and other pre-tax payroll deductions, according to a bill summary provided by Rep. Buchanan’s office. 

The bill would set $2,700 as the annual cap, but there would be no minimum contribution requirement, according to the summary.

“Charities and non-profit groups throughout the U.S. serve some of the most vulnerable populations in our communities,” Rep. Buchanan pointed out.

If enacted, H.R. 4002 also would give employers the option to administer FGAs themselves or enlist the assistance of employee benefits managers, who would be required to maintain the confidentiality of donor information and donation delegations, according to the summary.

H.R. 4002 has been referred for consideration to the U.S. House Ways and Means Committee.