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| The Global Freedom Institute |
| "Faith Based" funding: A Recipe for Disaster? (page 2) Attached to the higher contribution limits could include a bonus deduction for diversifying donations at a base amount. For example, if the charitable contribution limit were $1 million, a contribution to twenty charities of at least $50,000 might trigger a bonus deduction. Or a sliding scale for donations to more than five, ten, fifteen, and twenty charities for a bonus deduction incentive. This �bonus deduction� should not be significant, but enough to give incentive for finding more charities, �faith based� or otherwise, that need the donations. The dollar value for a minimum donation should be high enough to help the NGOs, but low enough so that donors can get it. We have not worked out those numbers, but this could be a significant step to increasing NGO funding. An additional option could be to allow a deduction of more than the dollar value. For example, if a donor were to donate $1,000 to a NGO, they could deduct 102% of the donation. A donation of $1,000 would equate to a deduction of $1,040 on a tax form. A cap on the additional percentage could be combined to trigger the �bonus deductions� mentioned above. For example, if the �bonus deduction� were triggered at five donations of $10,000, $50,000 could be the cap for receiving the additional deduction percentage. Or a sliding scale on deductions, such as a 105% deduction up to $1,000, a 104% deduction up to $5,000, and so on. This would encourage people who could not normally donate much money to donate what they could for the tax deduction. It would also benefit people who could donate more to NGOs because the more they donate, the larger dollar deduction they would get. These, alone or in combination, could eliminate the need for government programs and endless bureaucracies and save the government millions and even potentially billions of dollars. The year 2000 was the largest donation year in American History. Implementing a tax incentive plan could raise the bar far beyond where it was set in 2000. It would also help shrink government necessity in many welfare programs, and help to create more of the �Communitarian� approach that President Bush seems to be projecting with his plan. It would help eliminate the stigma of being on the governmental payroll. It would also create an atmosphere of helping others, rather than letting them flounder, assuming government was doing the job of the average citizen for them. It is time for Americans to help Americans and not wait for government to do it. Tax incentive helps to keep government out of control of the NGOs and allows Americans to regain the unity that has been lost among Americans over the years. It is time to return to an ethic that has been long lost in America. The ethic of helping each other and ourselves. Only then, will America begin its return to greatness. -GFI 2/23/01 1 2 Return to Main Page Email us with a response. What do you think? Would you support a tax incentive plan as laid out here? Do you support President Bush's plan? Do you have any other ideas? Let us know. |
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