Charities Protest Provision In Pending Tax Relief Bill

On January 20, a group of over 60 charitable organizations, including many religious groups, signed a letter addressed to the House Ways & Means and Senate Finance Committees opposing a provision in S. 2020, the Tax Relief Act of 2005. The bill, as passed by the Senate, will now go to Conference with the House. While the bill creates a number of incentives to charitable giving, including a charitable deduction for non-itemizers, it has one provision that could discourage giving. The new law would permit charitable deductions (even by itemizers) only for contributions exceeding $210 per year ($420 for joint filers). The organizations protested that "The withholding of a deduction implies that a smaller gift is not substantial, not a sacrifice worthy of recognition. But for many donors and charities, smaller gifts are extremely significant." The full text of the letter is available online, and a report on it appears in the January 25 BNA Daily Tax Reporter (subscription required). [Thanks to Steven H. Sholk for the information.]