Policy / Support Charitable Giving

Support Charitable Giving

Southern Baptists affirm tax policies that incentivize charitable giving. Both families and the government hold an interest in charitable giving so that the voluntary sector of our nation realizes its fullest potential. The institutions of a healthy civil society—houses of worship, poverty relief organizations, education, the arts, and more—depend on charitable giving. Therefore, we object to any tax policy that would have a chilling effect on charitable giving.

The 2025 Working Families Tax Cuts, also known as the One Big Beautiful Bill Act, expanded tax incentives for charitable giving, a major priority of the ERLC’s budget reconciliation advocacy. The Tax Cuts and Jobs Act of 2017 expanded the standard deduction, a welcomed relief to many taxpayers, but the system has drastically undercut the number of itemizing taxpayers and therefore reduced those incentivized to give more to charity. In recent years, less than 10% of taxpayers have itemized and were eligible to take the charitable deduction.

Now, starting in 2026, those taking the standard deduction will be eligible to take a charitable deduction, encouraging charitable giving for nearly 90% of taxpayers. Those filing singles are eligible for a $1,000 deduction and married couples can deduct $2,000 of giving from their taxable income. This is an enormous victory for the charitable sector, which has seen declining giving since 2017.

The ERLC calls for Congress to build upon the new universal charitable deduction by passing the Charitable Act, which would increase the deduction thresholds, further encouraging taxpayers to give generously. Our government should welcome the generosity of citizens at all levels of income who desire to help their neighbors through charitable organizations.

Additionally, recent problematic lower court rulings have held that simply holding tax-exempt status means that an organization has accepted “federal financial assistance” and is subject to all regulations that apply to those receiving federal funding. Many faith-based organizations, including churches, now explicitly reject federal funds that could bolster their work because these regulations would subject them to federal regulations requiring them to compromise their most deeply held beliefs.

Therefore, the ERLC urges Congress to pass legislation to protect organizations that hold tax-exempt status, like many ministries and churches, from such intrusions to clarify that tax exemption does not equate to receiving “federal financial assistance.”