GRANT WRITING, FUNDRAISING ISSUES, MISC.
The Bush Incentive for Year-End Giving

President Bush signed legislation in September crafted to encourage donors to give more to charity this year, but gifts must be made by December 31, 2005. The new bill provides an incentive to contribute larger gifts by eliminating the 50 percent adjusted gross income limitation on charitable deductions by individuals. The enhanced deduction is not limited to contributions for Katrina relief, but applies to all public charities with the exception of Type III supporting organizations and donor advised funds.

If you plan to use this information to persuade donors to make or increase their year-end gifts, keep in mind that for some donors, the deduction may entail other adverse tax consequences. So be sure to include a disclaimer indicating that donors should consult their tax and financial advisors to see how the law might apply to them, especially since there may be state tax consequences with their donation.

To educate yourself about the law’s provisions, go to http://www.house.gov/jct/x-69-05.pdf, OR http://fconline.fdncenter.org/pnd/5001511/story.htm