Congress Extends Tax Break for Tsunami-Relief Donors
Congress has approved a bill that would enable people to deduct donations for tsunami disaster relief made through January 31 on their 2004 returns, CNN/Money reports.
The bill, which President Bush is expected to sign, was proposed by Senators Chuck Grassley (R-IA) and Max Baucus (D-MT) and passed by unanimous consent by both the House and Senate.
Americans have responded to the disaster in South Asia with an unprecedented outpouring of giving. Officials at Catholic Relief Services told the New York Times that they believe the temporary change in the tax law will help extend that generosity. "By extending the 2004 deadline to Jan. 31, we expect that many donors will choose to respond with giving patterns similar to the traditional deadline at the end of the calendar year," a spokesperson for the agency told the Times.
But not everyone is applauding the move. Becky Graninger, vice president of direct marketing for Baltimore-based World Relief, told the Chronicle of Philanthropy that while the bill may benefit relief groups, as donors give more to one crisis they are likely to give correspondingly less for other needs. "Donors can only give you so much," added Graninger.
