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NOTE: The following article was originally published by Tax Analyst in their September 14, 2005 issue and is reprinted here with permission..
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September 14, 2005
The delayed governmental response in the aftermath of Hurricane Katrina has caused Senate Finance Social Security and Family Policy Subcommittee Chair Rick Santorum, R-Pa., and several charity officials to be wary of including proposals to reform charitable organizations in the CARE Act.
“In responding to the current tragedy, these social entrepreneurs have demonstrated the agility, flexibility, and innovative thinking that has stood in such stark contrast to the bureaucratic response from all levels of government,” said Santorum at a subcommittee hearing September 13, adding, “There are enough laws on the books to ensure donors are protected.”
Officials from The Salvation Army, Southern Baptist Convention, and the Brother’s Brother Foundation supported provisions in the CARE Act that would encourage charitable giving, such as permitting nonitemizers to deduct charitable contributions and allowing money to be donated directly from IRA accounts without first having to be declared as income. However, they joined Santorum in arguing against including charitable reform proposals in the act that they said would increase their organizations’ administrative burdens.
Eugene Steuerle, a senior fellow at the Urban Institute and a columnist for Tax Analysts, recommended keeping the charitable reform measures in the act |