The Everyday Philanthropist Act is Here!
Help us empower everyday, working Americans to give back.
About The Greater Give
The Greater Give is a 501(c)(6) founded to compel more giving by cultivating a movement of shared responsibility in the workplace.
The Greater Give was founded by Dan and Patti Rashke as part of their efforts to support the philanthropic community and increase charitable giving.
TASC owners, Dan and Patti Rashke, founded The Greater Give as part of their personal and business mission to “do good.” As a company that values corporate social responsibility, TASC is proud to support The Greater Give and its mission to compel more giving.
About the Everyday Philanthropist Act (H.R. 6616)
H.R. 6616 is named the "Everyday Philanthropist Act” because it was created to empower everyday, working Americans who want to give back to their communities regardless of their status, income level, or tax bracket.
No. The Everyday Philanthropist Act has garnered support on both sides of the aisle. Currently, the bill has three Republican cosponsors and three Democratic cosponsors.
The Everyday Philanthropist Act has garnered support from nonprofits, businesses, think tanks, universities, and trade associations. Our supporters include America’s Charities, Community Health Charities, Global Impact, and the National Association of Independent Colleges and Universities.
Representative Erik Paulsen (R-MN) introduced the Everyday Philanthropist Act. The bill's cosponsors include Representatives Mark Pocan (D-WI), Mike Gallagher (R-WI), Cheri Bustos (D-IL), Ami Bera (D-CA), Tim Walberg (R-MI), and Sean Duffy (R-WI).
No, the bill has not yet been scored by the CBO.
No, the bill was created in response to a long-standing issue within our tax code, under which only itemizers (taxpayers who typically fall in the highest income brackets) are able to lower their taxes by giving to charity. At The Greater Give, we believe taxpayers should feel empowered to give back regardless of their income level, so we worked with Congress to introduce this legislation that would allow non-itemizers to lower their taxes by giving back as well.
The Universal Charitable Giving Act proposes a universal deduction available to all taxpayers. The Everyday Philanthropist Act proposes the creation of a Flexible Giving Account (FGA) that would empower employees to give back. While both bills aim to increase charitable giving by granting tax incentives for giving back to many more Americans, the Everyday Philanthropist Act also strives to foster a culture of shared responsibility in the workplace. We believe the implementation of FGAs would empower the cultural shift needed to increase giving in the workplace.
No. Both or either bills passing would only lead to an even greater increase in charitable giving.
About Flexible Giving Accounts
A Flexible Giving Account (FGA) is a pre-tax payroll deduction for employee giving. Eligible employees would enroll in an FGA with their employer and allocate a portion of their paycheck to be deducted pre-tax for charitable giving. For every dollar that is contributed pre-tax, the employee reduces their taxable income, and the employer lowers company payroll taxes.
All employees are eligible to use an FGA unless they qualify as a highly compensated or key employee as defined by the Internal Revenue Code. Employers may elect to exclude employees under the age of 21, employees who have less than one year of service with the employer during the plan year, or employees described by section 410(b)(3)(C) by the Internal Revenue Code.
Employees can contribute up to $5,000 per year into their Flexible Giving Account (FGA) pre-tax. Any additional amount placed into an FGA will still be included in your taxable income.
Any organization certified as a 501(c)(3) public charity by the IRS is eligible to receive donations through a Flexible Giving Account (FGA).
Yes, most colleges and universities are qualified to receive tax-free donations by the IRS.
No, trade associations (or any 501(c)(6) organizations) are not qualified to receive tax-free donations by the IRS.
A Flexible Giving Account (FGA) is intended to serve as a “money in, money out” account used to transfer funds directly to charities. An FGA is not intended to function as a holding location where funds are left sitting year after year.
The Flexible Giving Account (FGA) is modeled after other benefit programs such as Parking, Transit and Dependent Care accounts that many employers already utilize. These can be self-administered or administrated through payroll providers, HRIS platforms, or third party administrators. This leaves little work for the employer, who simply sees the benefits of lower payroll taxes and happier employees!
Congress is currently reviewing the Everyday Philanthropist Act (H.R. 6616) that has proposed the creation of Flexible Giving Accounts (FGAs). We are hopeful that Congress will see the far-reaching benefits of this legislation and approve the bill so that businesses, nonprofits, and taxpayers can enjoy the benefits! You can help push the legislation along by writing to Congress here or signing your organization on as a supporter here.
Employers will have the option to administer the Flexible Giving Account (FGA) themselves or enlist the help of a third party who specializes in managing such benefit programs (i.e payroll providers, HRIS platforms, or third party administrators). In the latter case, donor information and donation delegation will be kept confidential much like with any consumer directed account (e.g. a Health Savings Account).
No, Flexible Giving Accounts (FGAs) have no minimum requirements. The FGA was created to empower the Everyday Philanthropist, so all contributions, no matter how small, are accepted.
Yes, employees can choose a donor-advised fund (DAF) to be the recipient of their donation. Flexible Giving Accounts (FGAs) are intended to quickly disburse funds to charities. Because of this “money in, money out” model, DAFs with a similar philosophy will prove the most impactful in terms of their ability to provide more donations to more charities more quickly.
Your company’s savings depend on the number of employees using a Flexible Giving Account (FGA) and their total yearly contribution. To calculate your company’s tax savings, please use our Employer Tax Calculator.