May 7, 1998 | Read Time: 1 minute
A group of 29 Republican Senators and Representatives, calling itself the Renewal Alliance, has proposed a package of bills aimed at helping downtrodden cities and the charities and churches that “bind communities together.”
Among the proposals:
Encourage state tax credits. States could use federal money to provide their residents with credits when they calculate their state taxes. The credits would be worth up to $250 for donors who give to charities that work to prevent or reduce poverty.
States could make up for tax revenue lost through offering the credits by using up to half of any existing federal welfare block grant. States would not be required to adopt a tax credit.
“We want to continue the work of the 1996 welfare reform [law] by encouraging states to transfer more authority and resources to the private, religious, and non-profit groups,” said the members of Congress in a promotional booklet accompanying their proposals.
Protect gifts from bankruptcy actions. The proposal would prevent a bankruptcy trustee from recapturing charitable contributions that were given more than a year before a donor filed for bankruptcy. The provision would protect a debtor’s donations for up to 15 per cent of the person’s annual gross income during the year a contribution was made. It would preserve the right of people to contribute and tithe while they repay their debts after filing for bankruptcy.
Limit liability of business donors. The proposal would limit people’s ability to sue businesses that contribute equipment to charities, allow charities to use their facilities for meetings, or make vehicles or aircraft available for the use of non-profit organizations.
