On November 15, 2005, the Senate Finance Committee approved legislation containing provisions for charitable giving incentives and charitable reforms. Under the bill, which will next go to the full Senate, individuals who do not itemize deductions on their returns may deduct amounts that they donate to charities in excess of $210; couples filing jointly may deduct amounts in excess of $420. Among the reform provisions included in the bill:
- Certain sponsoring organizations that operate donor-advised funds would be required to make qualifying distributions of at least 5 percent of the aggregate asset value of donor-advised funds maintained by the organization each year, or award at least $250 from each account every three years.
- Type III supporting organizations would be required to distribute annually the greater of 85 percent of their income or the sum of (i) 5 percent of the aggreate fair market value of their assets other than assets that are used (or held for use) directly in supporting the charitable programs of the supporting organization or its supported organizations; and (ii) any amount received or accrued in such year as repayments of amounts that were taken into account as support provided by the supporting organization in prior years.
Click here for The Chronicle of Philanthropy Update.
Click here for Description of the Chairman’s Modification to the Provisions of the "Tax Relief Act of 2005" prepared by the Staff of the Joint Committee on Taxation on November 14, 2005 and scheduled for markup by the Senate Finance Committee on November 15, 2005.