The Bush administration is no longer interested in trying to convince Congress to support legislation that would provide a charitable deduction to people who do not itemize deductions on their income tax returns, the Chronicle of Philanthropy reports.

The administration's plan would have allowed the 70 percent of taxpayers who currently do not itemize deductions on their returns to deduct charitable contributions totaling more than $250, up to a ceiling of $500, if they file as individuals, or $500, up to a ceiling of $1,000, if they file jointly. Nonprofits have long lobbied Congress to allow taxpayers who do not itemize to deduct a portion of their charitable donations, on the theory that such a move would increase charitable contributions from individuals.

But with the large and growing federal deficit dominating fiscal policy discussions in Washington, it appears as if the administration has thrown in the towel. "It was very clear," said James Towey, director of the White House Office of Faith-Based and Community Initiatives, "that there was never a lot of enthusiasm [in Congress] for this from the standpoint of tax policy."

In a recent address before a conference of three hundred religious leaders, however, President Bush made it clear he continues to support other measures aimed at increasing charitable giving, including one to allow donors to make charitable contributions directly from their individual retirement accounts without incurring taxes, and another that would expand tax breaks for businesses that donate food to charities. The president also reasserted his continued commitment to helping faith-based organizations compete for government funds. "The goal is, over the next four years, to change the culture so faith- and community-based organizations will be welcomed into the grantmaking process of government," the president said.