House Votes for Faster Tax Breaks for Haiti Gifts

Yesterday, the U.S. House of Representatives voted unanimously to approve a bill allowing taxpayers to write-off donations made to Haitian relief efforts on their 2009 tax returns. According to this article from the Washington Post, the Senate is expected to act quickly on the popular legislation.

Under current law, donors would have to wait until they file their 2010 returns next year to take the deductions. But the newly advanced bill would allow donations made by the end of February to be deducted from 2009 returns.

The bill passed on a voice vote with no opposition. Quick Senate action is expected. A similar law was enacted in 2005 for donations to victims of the Indian Ocean Tsunami in December 2004.

"It's a simple gesture but it will encourage giving in this challenging economy," said Rep. Earl Blumenauer, D-Ore.

Last week's quake killed an estimated 200,000 people in Haiti, left 250,000 injured and made 1.5 million homeless, according to the European Union Commission. A powerful aftershock caused even more damage Wednesday.

10 Ways to Make Tax Deductible Donations to Haiti

Yesterday, Haiti was sadly struck by another earthquake. As we have all heard in the news, the island was devastated by a series of massive earthquakes on January 12^th. The disaster left thousands of Haitians injured or dead, and the relief efforts have encountered all types of problems. There are dozens of organizations working to provide assistance to the people of Haiti, and to help encourage all my readers to make a donation I have put together the following list of ways to contribute as well as a brief explanation of how you can deduct the contributions from your taxable income next year.

Donations are Tax Deductible

With tax season beginning, finances are probably on everyone’s mind. Keep in mind that all charitable contributions are tax deductible. Reach into your pockets a little deeper to donate as much as you can to the relief efforts. Just make sure that you keep records of your donations for next tax season.

Top 10 Ways to Make a Donation

1. Cell Phone Donations

If you cannot afford to make a sizeable donation to the relief efforts then you can make a small and easy donation from your cell phone. You can text HAITI to 90999 to donate $10 to the American Red Cross, or text HAITI to 25383 for a $5 donation to the International Rescue Committee. You will see the charge on your next phone bill, so be sure to keep it stored with your other tax documents.

2. Larger Donations to the Red Cross

If you want to donate more then $10 to the Red Cross, and do not have time to send a dozen text messages, then you can use a credit card to donate either over the phone (1-800-REDCROSS) or by visiting their website. If you would like to mail a check then you can send it to the American Red Cross, P.O. Box 37243, Washington, D.C. 20013.

3. Clinton Bush Haiti Fund

In a sign of bipartisan support for Haiti, former presidents Bill Clinton and George W. Bush setup the nonprofit Clinton Bush Haiti Fund. As of today, the fund claims to have received over 126,000 contributions. You can donate through their website, or text QUAKE to 20222 to make a $10 donation through your phone. You could also mail donations to The Clinton Bush Haiti Fund, c/o William J. Clinton Foundation, Donations Department, 610 President Clinton Avenue, Little Rock, AR 72201.

4. Music for Relief

To encourage younger generations to donate, popular music artists including Linkin Park, Dave Matthews Band, Alanis Morissette, the All-American Rejects, Enrique Iglesias and other teamed up with Music For Relief. Their site offers a free music download, but prompts users to make a donation after downloading.

5. UNICEF

UNICEF works in over 150 countries to provide children with nutrition, education, and emergency relief. To encourage taxpayers to donate the U.S. Fund for UNICEF is “absorbing all associated administrative costs so that 100% of every dollar you give to the U.S. Fund for UNICEF will support UNICEF's relief efforts for children in Haiti.” To donate check out this link on their website, or call 1-800-4UNICEF.

6. National Nurses United

Over 10,000 nurses have reportedly already volunteered to go to Haiti to work with relief organizations. However, National Nurses United still needs more funding to send them to Haiti. You can make a donation through their website, with all proceeds going directly to the fund to send nurses to Haiti.

7. AmeriCares

AmeriCares is a nonprofit organization that provides disaster relief by supplying medicine and medical supplies to victims. They have already sent over $6 million worth of supplies to Haiti, and are actively seeking more donations. You can make a contribution by dialing 1-800-486-HELP or visiting AmeriCares.org.

8. Doctors Without Borders

Another nonprofit group that has been active in Haiti is Doctors Without Boarders. They are using funds to repair hospitals and send doctors to create temporary emergency centers to treat victims in Haiti. Go to Donate.DoctorsWithoutBorders.org and you can make a donation from $35 all the way up to $10,000.

9. World Water Relief

Sadly, clear water is scarce in Haiti and the people need clean water not only for drinking, but also for sanitation and medical treatment. World Water Relief has already sent a team with 18 self-sustaining portable water flirtation units to Haiti, and they are already planning their next effort. 100% of donations go to the cost of sending water systems to Haiti, and you can help by making a donation through their website.

10. Hope for Haiti Telethon

Tomorrow (Friday, January 22) actor George Clooney is hosting the Hope for Haiti Emergency Fundraising Telethon from 8 to 10 pm. Guests will include Mary J Blige, Robert Pattinson, Justin Timberlake, Christina Aguilera, Zac Effron, and many others. The telecast will air on ABC, CBS, NBC, FOX, CNN, BET, The CW, HBO, MTV, VH1 and CMT, without commercial interruption. You can tune in, and make a donation over the phone using your credit card.

Burning Down the House? IRS Nixes Tax Deductions

According to this new Associated Press article, the IRS is trying to prevent homeowners from claiming a charitable contribution deduction for donating their home to local fire departments. Over the past few decades, dozens of homes across the country have been burnt to the ground so firemen in training can gain real life experience. However, the IRS is seeking to put a stop to this trend by claiming that such houses were already slated for demolition and that donating them for fire training is not an act of charity.

The dispute adds a new element of controversy to the decades-old debate over whether the risks associated with "live burns" — more than a dozen firefighters have been killed in the past two decades — outweigh the training benefits.

Fire chiefs say live burns supply invaluable training for volunteer departments, which make up the bulk of the nation's firefighters. And some fear that the tax disputes will discourage donors from coming forward.

Nobody tracks the number of live burns each year, but fire officials say they are increasingly rare because of mounting safety and environmental restrictions and because fewer homes are up for demolition in this slumping economy.

"We need to keep our skills current. Those opportunities are going to become fewer and farther between," said Fire Chief Mitch Ross in Upper Arlington, the wealthy Columbus suburb where the Sherwin Road home owned by James Hendrix burned down in 2004.

Churches, corporations and cities with vacant properties also donate buildings for fire training. Sometimes it is a dilapidated old barn, other times a sprawling suburban house. It's impossible to know exactly how many people have tried to claim such deductions; the IRS would not comment.