U.S. Rep. Brian Fitzpatrick (R-PA) on March 27 introduced a bipartisan bill that would provide $60 billion in emergency funding for nonprofits and create a universal charitable deduction.
“Charitable organizations in my community and across our nation are hurting,” Rep. Fitzpatrick said. “In times like these, we must support these critically important organizations that serve our most-vulnerable citizens.”
Rep. Fitzpatrick is the lead original cosponsor of the Save Organizations that Serve (SOS) America Act, H.R. 6408, with bill sponsor U.S. Rep. Seth Moulton (D-MA) and seven other original cosponsors, including U.S. Rep. Darin LaHood (R-IL). The bill would extend the charitable deduction to all taxpayers regardless of whether a taxpayer itemizes deductions in order to encourage and increase charitable giving, and to provide for loans and loan guarantees to certain public charities, according to the congressional record.
Specifically, the bill would help nonprofits of any size qualify for newly created Small Business Administration (SBA) loans.
“The focus of our efforts to save America’s small businesses must include all of our nonprofit organizations,” said Rep. Fitzpatrick. “Our community and our nation, and those most in need, cannot survive without them.”
If enacted, the legislation also would improve the above-the-line charitable deduction included in the most-recent COVID-19 relief package by significantly raising the cap and allowing all taxpayers to immediately claim the deduction on their 2019 taxes and beyond, according to a bill summary provided by the lawmakers.
“Nonprofits are operating at a loss to help people manage the disruption coronavirus is causing,” said Rep. Moulton. “These groups and many others still face the same challenges small businesses are facing, and they need a hand from the government. I urge Congress to work with Rep. Fitzpatrick and me to provide one.”
H.R. 6408 has garnered support from Goodwill Industries International, YMCA of the USA, United Way Worldwide, the Alliance for Strong Families and Communities, Habitat for Humanity International, The Jewish Federations of North America, the National Council of Nonprofits, and the American Heart Association.