This episode of Giving Ventures features a special interview with Senator James Lankford (R-OK), who provides a charitable-minded view from Capitol Hill. As one of the few U.S. Senators with extensive experience running a nonprofit, Lankford understands the needs and challenges of the charitable community and appreciates the role public policy can play in fostering a vibrant nonprofit sector.
Senator Lankford has represented Oklahoma in the United States Senate since 2015 and, prior to his Senate service, represented the 5th District of Oklahoma in the U.S. House of Representatives from 2011 to 2015. Before entering public service, the Senator led the Falls Creek Baptist Conference Center in Oklahoma.
The State of Giving in America
While Americans stand out among their peers on the world’s stage as a uniquely charitable people, Senator Lankford isn’t quick to offer pats on the back. Noting that on average Americans give less than 2% of their income to charitable causes, Lankford says we have room to grow in our giving.
In his view, policymakers should look to encourage charitable giving—and not just because of the dollars that flow to charitable causes. Those who donate, the Senator argues, get more involved in the nonprofits they support, often volunteering or even serving on the board. “It’s so important to incentivize giving because that incentivizes strengthening nonprofits,” Lankford says.
Protecting Nonprofits
One key to strengthening the nonprofit sector is respecting the rights of the donors who make charitable work possible. Unfortunately, those rights face threats. By leaking donor lists and harassing supporters, bad actors hope to undermine the work of charitable groups they disagree with. Under the guise of transparency, laws requiring nonprofits to hand over donor lists undermine supporters’ First Amendment rights and open them up to targeted campaigns.
To strengthen donors’ rights, Lankford and his Senate colleague Todd Young (R-Indiana) introduced last year the Protecting Charitable Giving Act. If passed, this legislation would ensure “suitable penalties for criminals who leak Americans’ private information and expand “the options for organizations and individuals to pursue criminal prosecution if their private donor information is leaked,” according to Philanthropy Roundtable.
Tax Incentives
Americans give more in December and, as Senator Lankford says, “it’s not just the Christmas spirit.” Tax deductions do matter, but only for about 9% of Americans. That’s because 91% of us take the standard deduction and, under current tax law, only itemizers can write off their charitable giving. When the standard deduction doubled in 2017, tax preparation became simpler for many families, but charitable giving took a hit.
As lawmakers work on a new tax bill this year, Lankford is keeping nonprofit giving in mind. One proposal he is fond of would offer a charitable deduction for non-itemizers, perhaps up to one-third of the standard deduction. Another idea is to offer write-offs for giving in excess of 1% of one’s taxable income.
