Brown lauds provision to tax extenders bill that supports charitable giving

As the Senate and House consider legislation to extend tax credits, U.S. Sen. Sherrod Brown has announced inclusion of a provision that will permanently extend several tax provisions that will support charitable giving, food donations and conservation efforts.
 
“Americans are generous people. We can help that foster charity by encouraging individuals and organizations to make charitable donations – whether to a food bank or another worthy organization,” Brown said. “This is especially good news for local food banks that rely on donations to feed those most in need.”
 
“The IRA Charitable Rollover has been a great support for the philanthropic sector and making it permanent will help facilitate the deep charitable impulses of Americans,” said Renée Chelm, Board Chair of the Jewish Federation of Cleveland. “In the past several years, the Jewish Federation of Cleveland has worked with many donors who have increased their philanthropy as a result of the IRA Charitable Rollover. These funds have benefitted people throughout the Greater Cleveland community as well as nationally and internationally. The Jewish Federation of Cleveland is deeply grateful to Senator Brown’s longstanding support on this important issue.”

The bill will:
 
· Reinstate the food donation tax deduction: The bill will reinstate a deduction that encourages individuals and organizations to donate food by providing a tax deduction for donations. It will also increase the deduction to 15 percent of one’s taxable income for food donations.

· Reinstate the Individual Retirement Account (IRA) charitable rollover: In 2006, as part of the Pension Protection Act, Congress established what is referred to as the “charitable rollover.” This tax provision allows individuals aged 70 and a half and older to withdraw up to $100,000 from an individual retirement account (IRA) tax-free so long as that money is donated to a qualified charitable organization. The provision not only allows individuals to support charities in their community, but also ensures that seniors who wish to give to charity can use money in their retirement accounts without affecting their benefit levels for other programs, such as Social Security or Medicare.

· Reinstate deductions for conservation easement donations: This deduction incentivizes land conservation by providing a credit to famers and other landowners to work with land trusts to voluntarily conserve land.