ARCHIVES OF PAST MONTHS

President's Armies of Compassion Initiative

On December 20, 2001, Congress closed its doors for the year without bringing up the President's Armies of Compassion Initiative. Congress is expected to return after January 23, 2002 although there is a chance that the session could begin earlier. "If I were President, I would call the Congress back the second day of January and finish the work," stated House Speaker J. Dennis Hastert, R-IL. Senate majority leader Tom Daschle, D-SD responded, "If Hastert wants to come back the 2nd of January, I'll meet him here."

Congress left several issues up in the air including the economic stimulus package and several expiring tax provisions that will have to have retroactive action in the New Year. Since these are major packages awaiting action, the President's Armies of Compassion Initiative could still be brought up after the first of the year; however, until Congress returns any action would only be speculation.
National Committee on Planned Giving

TOP OF PAGE

Economic Stimulus Bill Dies in Senate

Efforts to pass an economic stimulus bill requested by President Bush now have come to a grinding halt. House Republicans stayed in session until 4:00 a.m. on December 20, 2001 to pass the Economic Security and Worker Assistance Act of 2001, H.R. 3529. The bill passed on a vote of 224 to 193. Nine Democrats voted with the Republicans for the bill.

Major provisions in the bill included the following:

While the stimulus bill passed the House, the Senate Majority Leader Thomas Daschle (D-SD) stated, "We've looked at the compromise one last time and concluded that it's wrong on all counts." Senator Daschle refused to allow the Senate to even vote on the bill. Under the Senate rules, the bill would have required 60 votes to pass. It appears that the Senate Republicans were eight or more votes short of obtaining the required 60 votes.

The stimulus bill issues will be dormant until the new legislative session commences on January 23, 2002.
Source: GiftLaw

TOP OF PAGE

Victims of Terrorism Tax Relief Act

However, the House and Senate did pass the Victims of Terrorism Tax Relief Act. It includes several sections to assist victims of the New York, Washington and Oklahoma City terrorist attacks.

The key benefits include:

• Exempts victims from income tax for the year of death and one prior year.
• Generally exempts estates from tax up to $8.5 million for 2001 and $3 million for other years.
• Allows charities to make payments without demonstration of financial need.
• Guarantees a minimum benefit of $10,000 per victim.
  Source: GiftLaw

TOP OF PAGE

Thinking about Donating that Car?

The Internal Revenue Service and state charity officials issued a consumer alert recently to help taxpayers avoid potential pitfalls when they donate their automobiles to charities.

Across the nation, an increasing number of charities have turned to car-donation programs in recent years as an effective way to raise money. Many of these charities run sound programs. But IRS and state officials are concerned that, as the end of the tax year approaches and taxpayers finalize their charitable donations, many may not know enough about the state and federal recordkeeping and filing requirements.

"When done correctly, donating a used car to a charity can help both the charity and the taxpayer," said IRS Commissioner Charles Rossotti. "We want people to take a few simple steps to avoid possible problems and to make sure they get the proper tax deduction for their donation. Don't get taken for a ride." State officials have additional concerns about car donation programs, stemming from their mandate to safeguard charitable assets and to prevent deceptive donation practices.

• CHECK THAT THE ORGANIZATION IS QUALIFIED -Taxpayers must make certain that they contribute their car to an eligible organization; otherwise, their donation will not be tax deductible. Taxpayers can use the IRS Web site to check that an organization is qualified by searching Publication 78 at www.irs.gov/bus_info/eo/eosearch.html.
• EXAMINE STATE FILINGS FOR MORE INFORMATION -- Taxpayers can also review the organization's state registration and financial filings. These documents are commonly filed with a state charity regulator such as the State Attorney General's Office or the Secretary of State's Office.
• ASK QUESTIONS ABOUT HOW THE DONATED VEHICLE WILL BE USED -- Many donors also want to make sure their contribution is used for the charitable purpose they intend. Ask whether those soliciting the car donation are officials of the charity itself or a private fundraiser acting on the charity's behalf. If it is a private fundraiser, what will it do with the vehicle? Will the car be fixed up and given to the poor and needy? Or will it be resold? And if it is resold, what share of the proceeds go to the charity?
• DEDUCT ONLY THE CAR'S FAIR MARKET VALUE -- Some car donation program operators have mistakenly claimed that donors can take the full "Blue Book" value of their car for a deduction. The IRS, however, will only allow a deduction for the fair market value of the car.
• DOCUMENT THE CHARITABLE CONTRIBUTION DEDUCTION -- For vehicle donations, taxpayers must document the car donation and its fair market value.
• CONTACT STATE CHARITY AND IRS OFFICIALS WHEN IN DOUBT -- Donors with questions about whether a contribution is deductible should call the IRS at 1-800-829-1040 or for TTY/TDD help, call 1-800-829-4059. They can also find IRS forms and publications at the IRS Web site at http://www.irs.gov/bus_info/eo/index.html.

TOP OF PAGE

Keep Internet Shopping Safe

While not a planned giving topic and even though the holidays are past, this repeat from last month consists off tips to ward off scams and make your online shopping experience simple and worry-free.

1. Keep Your Passwords Safe.
Be sure to choose a different password every time you register with a new site. Though this is a hassle, it works to prevent theft of personal information and has been proven effective in industry studies. Hint: Keep your passwords in a safe place that is accessible only by you.

2. Keep An Eye On Delivery Dates.
Under Federal Trade Commission law, sellers must ship items within a 30-day deadline. If the seller cannot make this commitment, you must be notified, given a chance to cancel your order and be awarded a full refund if you have chosen to cancel.

3. Check Shipping And Handling Fees.
Online buyers can usually choose from different shipping methods at varying costs. Be sure to designate which delivery method you prefer. If you don't, the retailer may decide the more costly option for you.

4. Keep Records.
Print and file all records related to your purchase such as the seller's name, address and telephone number, and a description of your order. In case you don't receive your shipment or receive the wrong shipment, this information will help correct the problem. Depending on the type of email program you use, you may be able to create folders (similar to inbox, sent, outbox etc.) such as a temp folder to move replies from merchants sent to you by email.

5. Don't Give Out Too Much Information.
Your password, credit card number and shipping information are the only items a vendor should require to take your order. Avoid giving out your social security or bank account numbers.

TOP OF PAGE