Let's Reward Charitable Giving

Let's Reward Charitable Giving

Rep. Boozman's Column for the Week of April 19, 2004

Americans are by nature very giving people. Every year, millions of Americans give to religious organizations, non-profit groups and schools in an effort to help those less fortunate and make the world a better place for all. Americans don't do this for recognition or compensation, but rather out of a genuine desire to make a difference. This, however, shouldn't keep us from rewarding this positive decision.

Back in September of 2003, I voted for legislation that would give credit to taxpayers for the charitable contributions they make. The "Charitable Giving Act of 2003" would offer every taxpayer the opportunity to deduct a portion of their charitable contributions.

Currently, taxpayers who itemize can deduct a portion of their charitable contributions. However, those who take the standard deduction when they file do not have the option to deduct any of their charitable donations. The "Charitable Giving Act of 2003" would change this. It would allow the 86 million Americans who do not itemize when filling out their tax returns, a chance to get credit for their charitable contributions. The bill would also allow the millions of Americans who have Individual Retirement Accounts (IRA's) to make tax-free contributions to charity from their IRA's.

By giving every taxpayer the ability to deduct their charitable contributions, we will spur even more giving from individuals, businesses and foundations. Data shows that taxpayers who receive a deduction for their contributions give more than those who do not receive a deduction. And since the bill also raises the cap on corporate charitable contributions, we should see an increase the amount of charitable giving by our nation's businesses.

The law will allow people and businesses to make even more of a difference on the lives of people in need. I am a strong believer that government has the desire to help, but people have the heart. The people who work at these charitable organizations are far more effective when it comes to helping those in need. They make up what President Bush calls the "Armies of Compassion" and we need to find ways, like the "Charitable Giving Act of 2003," to encourage more giving to these organizations.

While we are too late to make these tax code changes this year, it is my hope that we can move quickly on this bill. We need to have a line where every taxpayer, not just those who itemize, can deduct their charitable contributions the next time they are filling out their 1040's.

The House and Senate must work together to get this bill to President Bush. I am confident he will sign it, as he shares the desire to increase charitable giving and wants to recognize the important work our nation's charities do. In doing this, we should also recognize and reward all those who help the "Armies of Compassion" make the world a better place through their generosity.