"Success in life has nothing to do with what you gain in life or accomplish for yourself. It's what you do for others." Danny Thomas

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NEWS SOURCES | ARCHIVES OF PAST MONTHS

Compiled Shorts

Hoping to stimulate President Bush's faith-based initiative, the Senate Finance Committee voted to let taxpayers who don't itemize deductions write off part of their donations, and to allow tax-free gifts from individual retirement accounts, the Associated Press reported Feb. 5.

The Texas attorney general has warned the public about phone and email scams seeking donations to help families of astronauts killed in the Columbia shuttle tragedy, the Houston Chronicle reported Feb. 7. "With the nation still grieving over the loss of these American heroes in the skies above Texas, we now have information that professional scam artists are using this tragedy to prey on the goodwill of our people," Attorney General Greg Abbott said.
Compiled by Donnie Stanley of Philanthropy Journal

CARE Bill Passes Senate Finance Committee
On February 5, 2003, the Senate Finance Committee approved the CARE Act of 2003 on a voice vote. All of the major tax provisions were retained in the bill. The CARE Act (S. 256) includes the following provisions:

1.Charitable deduction for nonitemizers of $250-individuals/$500-couples.
2.Direct gifts to charity from IRAs.
3.IRA gifts to unitrusts and gift annuities.
4.Enhanced deductions for food and book gifts.
5.Enhanced gifts from Subchapter S Corporations.
6.Ability to sell all businesses through unitrusts.
7.25% exclusion on sales of conservation property.
8."Sunshine" disclosure provisions.

Two major items were omitted from this bill that had been in previous versions. The private foundation 2% excise tax is not reduced to 1%. In addition, there is no increase of the "C" Corporation giving limit from 10% to 15%.
from GiftLaw

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Census data show drop-off in volunteerism

As President Bush pushes for more Americans to volunteer, a new national data book shows what looks like a sharp drop in adult volunteerism between 1998 and 2000.

The nearly 1,000-page Statistical Abstract of the United States for 2002 released yesterday by the U.S. Census Bureau, indicates that 44 percent of U.S. adults provided volunteer services in 2000, down from 55.5 percent two years earlier.

More encouraging was the findings that the 44 percent who did volunteer in 2000 contributed an average of 15.1 hours per month, compared with 14 hours in 1998.
taken from an article By Joyce Howard Price THE WASHINGTON TIMES

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Greenspan Throws Cold Water on Bush Arguments for Tax Cut

WASHINGTON, Feb. 11 - Alan Greenspan, the Federal Reserve chairman, today rebutted many of President Bush's arguments in favor of big new tax cuts, saying that the economy probably does not need any short-term stimulus and warning that budget deficits could spiral out of control.

Mr. Greenspan did not attack the specifics of Mr. Bush's $674 billion tax-cutting package, but he cast doubt on the need for a stimulus proposal in the first place.

He also disagreed with the Bush argument that rising budget deficits have little link to higher interest rates. And he pointedly took issue with the administration's argument that the best way to balance the budget is by promoting faster growth.

"I am not one of those who is convinced that stimulus is desirable policy at this point," he told lawmakers at a hearing of the Senate Committee on Banking, Housing and Urban Affairs. "My own judgment is that fiscal stimulus is premature."
taken from an article by EDMUND L. ANDREWS NYTimes

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Update on CARE Act of 2003

S. 272, the Charities Aid, Recovery, and Empowerment (CARE) Act of 2003, was introduced in the Senate last Thursday. It is currently scheduled for hearings before the Senate Finance Committee on Wed., Feb. 5.

This bill was widely supported by nonprofit groups in 2002 because of its "IRA rollover" provisions, allowing more favorable tax treatment for IRA assets to be donated to charity. The 2002 bill never reached the Senate floor due to parliamentary maneuvering related to some Senators' objections to the bill's "charitable choice" and "faith-based" provisions.

In a Washington Times article today (2/3/2003), the bill's sponsor, Sen. Rick Santorum (R-PA) says the bill may move to the full Senate floor as soon as next week. From the article (http://www.washtimes.com/national/20030203-62429756.htm) "The reintroduced bill could hit the floor as soon as next week," said Mr. Santorum, who heads the Senate Republican Conference. "[Senate Majority Leader] Bill Frist is on this bill as a co-sponsor and is committed to moving it forward," Mr. Santorum said.

Data Show Rapid Growth in Federal Budget Shortfall

New government data show that the federal government's budget shortfall has grown sharply in the last few months, even before Congress takes up President Bush's plan to cut taxes by $670 billion over 10 years.

The new shortfall has already complicated the calculations behind Mr. Bush's budget proposal for 2004, which he is to announce on Feb. 3. With revenues sinking and outlays for the military and for domestic security rising, White House officials are searching for every possible way to trim social programs and muster support for their tax cuts.

In the three months from last October through December, the federal government ran a deficit of $109 billion, nearly three times as big as the year before and well on the way to setting a new record by the end of the fiscal year.

Administration officials have already conceded that the budget deficit for this year will be from $200 billion to $300 billion, not including the costs of a possible war with Iraq.
By EDMUND L. ANDREWS NYTimes

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Democrats Seek a Tax Rebate to Aid Growth

Senate Democrats took on the administration's tax cut plan in earnest today with the release of a sharply different economic stimulus proposal, calling for a $300-a-person rebate check and $40 billion in aid to states and cities.

The one-year plan, announced in Cleveland by Senator Tom Daschle, the minority leader, would spend $141 billion to stimulate the economy, in contrast to the 10-year $674 billion plan proposed by President Bush. It would drop the administration's proposal to eliminate the dividend tax, an idea with diminishing support on Capitol Hill, and concentrate its tax relief at the lower-to-middle end of the economic spectrum, with few benefits for the wealthy.

Today's plan is likely to become the Democrats' most reliable political tool once the jockeying over tax cuts begins on Tuesday with Mr. Bush's State of the Union address, even though the party lacks the votes to pass it. Although some Democrats have slightly different ideas on how to stimulate the economy, the party appears to be more unified against Mr. Bush's economic ideas than it was in 2001, and its leadership has begun to take heart in the president's slippage in opinion polls, particularly on economic issues.

The Democratic leadership in the House and Senate is in agreement on the populist appeal of tax rebates and are intended to draw the sharpest possible contrast with the administration's emphasis on cutting taxes on stock dividend.
By DAVID FIRESTONE NYTimes

Sen. Hutchison Reintroduces Charitable IRA Rollover Bill

U.S. Senator Kay Bailey Hutchison (R-TX) has re-introduced bipartisan legislation to allow donors to roll over assets from an Individual Retirement Account, or IRA, to a charity without incurring a tax liability.

"Charitable giving shouldn't be taxable event. Unfortunately, that's exactly what happens under current law if a donation comes from an IRA," Senator Hutchison said. "This bill will encourage a valuable new source of American philanthropy."

"One of my priorities has been to promote charitable giving and expand the role charities and faith-based institutions play in addressing social problems in the United States," Senator Hutchison said. "This bill will make it easier for Americans to help those in need."

The legislation, co-sponsored by Sens. Richard Durbin (D- IL) and Carl Levin (D-MI), allows individuals age 59 1/2 or older to move assets without penalty from an IRA directly to a charity, or into a qualifying deferred charitable gift plan, such as a charitable remainder trust, pooled income fund or gift annuity. Current law requires taxpayers to first withdraw assets from their IRA, pay the taxes due, and then contribute the funds to a charity.