U.S./world – Tax incentives – Backing model programs

The charitable sector would get a bigger boost from the public sector under the budget plan that President Bush gave to Congress April 9, TaxWire reported.

A proposed $89 million Compassion Capital Fund would give startup and operating funds to charities to expand or build on model programs, and would fund research on “best practices” among charities.

The budget plan also includes a controversial proposal to spur states to create tax credits for contributions to designated charities by letting states use funds from the federal Temporary Assistance to Needy Families program to help cover revenue losses, TaxWire said.

Independent Sector, a charitable trade group, opposes the proposal, saying it would favor some charities and weaken the idea of letting private donors make their own choices by encouraging some charities over others, TaxWire said.

For full story, go to TaxWire.

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