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BY MAYNARD MOORE
Special to UMConnection

Congress has acted to encourage additional charitable giving during this critical time as both government and nonprofit organizations seek to respond to natural disaster.

The Katrina Emergency Tax Relief Act of 2005 (KETRA 2005) includes a number of important provisions to help people support their traditional charitable interests (as well as to aid hurricane victims). Some of the provisions in the law, signed by President Bush on Sept. 23, give tax breaks to businesses which directly aid disaster victims.

However, the measure also includes special new incentives for individuals who make charitable gifts of cash to any approved public charity (including churches) before the end of 2005.

Charitable deductions have long been allowed under gift tax and estate tax laws, but the amount one can deduct for income tax purposes in any given year has been limited. Contributions of cash are generally deductible in amounts up to 50 percent of what is known as the donor?s Adjusted Gross Income (AGI), which serves as the donor?s 'contribution base.'

Now, however, Congress has temporarily suspended limits on deductions for gifts of cash to qualified charities made during the period August 28 through December 31. Thus, donors can deduct qualified charitable contributions in an amount up to 100 percent of their AGI, if so desired.

People should contact their own tax preparer for more information. In addition, the Rev. Charlie Parker, director of the Baltimore-Washington Conference Steward-ship Center and Foundation, is available at (800) 492-2525, Ext. 307.