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E-Newsletter -- October, 2005
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In This Issue:
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All Charities, Major Donors Benefit From Katrina Relief Law |
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Katrina and Nopnprofits |
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On the Speaking Circuit... |
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IRS Standard Mileage Deduction Increased |
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Please Confirm Your Subscription |
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Please Share With a Friend or Colleague! |
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Featured Links:
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All Charities, Major Donors Benefit From Katrina Relief Law
Major donors have a special opportunity to increase their tax-deductible support for charities for the rest of 2005, thanks to Hurricane Katrina-related legislation signed into law on September 23.
H.R. 3768, now known as Public Law 109-73, allows individuals to deduct gifts to charity up to 100% of adjusted gross income instead of the usual 50%. This lifting of the 50% cap is in effect for gifts made between August 28 and December 31, 2005. It applies to charitable gifts of cash made to a 501(c)3 charity, but does not apply to gifts made to a donor’s donor-advised fund. This provision applies to gifts made to any charity, not just those involved in hurricane disaster relief or hurricane victim support.
Nonprofit fund raisers and major donors are encouraged to consult with their tax advisors to take advantage of this special opportunity.
Katrina and Nonprofits
Hurricane Katrina and its aftermath poses the largest domestic challenge for US nonprofits since 9/11. There are tragic direct effects on people, animals, and property in the affected areas. Evacuees with immediate and longer-term needs have been welcomed into neighboring communities as well as states across the US.
US oil production has temporarily been reduced by one million barrels a day, and a significant part of US oil refining capacity was interrupted by hurricanes Katrina and Rita. Energy costs have increased partly as a result of this damage and interruption. There is a potential ripple effect throughout the economy as costs increase and inflation worries are increased.
We posted an article on our web site within days of Katrina. Remembering the lessons of 9/11, we believe that five watchwords are important for nonprofit leaders to bear in mind: 1) compassion; 2) action; 3) communication; 4) preparation; and 5) perspective.
NOTE: Since the article was written, Katrina/Rita contributions to major charities have exceeded $1.7 billion. This is less than, but approaches, the approximately $2.4 billion contributed to 9/11-related charities.
On the Speaking Circuit...
Margaret Sumption of Sumption & Wyland presented an introduction to communication and style to 2,300 employees of Citibank during their “Town Hall” meetings in Sioux Falls last week. She used the GOLB Profile to introduce the concepts of individual style and how one’s style can influence their communication with others.
Event organizers report that Margaret's presentation was very well received. One public affairs manager said that Margaret's presentation was the first in years where participants stopped in the halls to ask for additional handouts and thank the organizers for inviting Margaret to speak.
Michael Wyland is scheduled to present a program to the Washington, D.C. Consultants' Consortium on January 10, 2006. He will be speaking on uses and abuses of the Myers-Briggs Type Indicator (MBTI) by workplace consultants.
MBTI is a powerful tool as an indicator of an individual's or group's personality type and communication modes. However, too many internal and external consultants use it to make overbroad generalizations and characterizations. The misuse of MBTI, like the misuse of any tool, can do harm.
IRS Standard Mileage Deduction Increased
The Treasury Department announced an increase to the optional standard mileage rates for the final four months of 2005. The rate will increase to 48.5 cents a mile for all business miles driven between Sept. 1 and Dec. 31, 2005. This is an increase of eight cents from the 40.5 cent rate in effect for the first eight months of 2005.
The new four-month rate for computing deductible medical or moving expenses will be 22 cents a mile, up from 15 cents for the first eight months of 2005.
The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
Announcement of mileage rates for 2006, normally made during the fall, will be delayed so the IRS can better gauge fuel costs for next year.
Reference IR-2005-99, Sept. 9, 2005, for more on this announcement.
Please Confirm Your Subscription
On October 13, 2005, we sent an e-mail asking all Sumption & Wyland E-Newsletter subscribers to confirm their subscriptions.
If you haven’t already done so, please do. We’re trying our best to assure that old, inactive e-mail addresses are purged and only people wishing to receive the newsletter are receiving it.
If you have any questions, please feel free to contact us through our web site or using the contact information at the bottom of this newsletter.
Thanks!
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This free monthly e-newsletter is sent to clients, friends, and colleagues by Sumption & Wyland, 818 S. Hawthorne Ave., Sioux Falls, SD, (605) 336-0244. Please contact us with your questions and ideas. To unsubscribe from this free e-newsletter, follow the link below.
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