California Community Foundation Responds to State of the Union Address Proposals That Would Expand Philanthropy Tax Benefits.News/Assignment Desk Editors LOS ANGELES--(BUSINESS WIRE)--Jan. 27, 2000 The California Community Foundation The California Community Foundation, located in Los Angeles, California serves all of Los Angeles County and is the United States' second-oldest community foundation. It has assets of over $1 billion and makes grants for several different charitable purposes. responded tonight to President Clinton's State of the Union Address “State of the Union” redirects here. For other uses, see State of the Union (disambiguation). The State of the Union is an annual address in which the President of the United States reports on the status of the country, normally to a joint session of Congress (the , in which the President presented proposals for tax legislation that would increase philanthropic phil·an·throp·ic also phil·an·throp·i·cal adj. 1. Of, relating to, or marked by philanthropy; humanitarian. 2. Organized to provide humanitarian or charitable assistance: giving throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Spokespersons for the California Community Foundation will be available tonight and tomorrow morning to expand on this statement and respond to any specific questions from news media organizations. To get clarification of this statement or for on-mike or on-camera reaction, call the after-hours media contact line: 213/305-3494. Responding to President Clinton's proposals, Joe Lumarda, the California Community Foundation's executive vice president, said: &uot;The President's proposals warrant very serious consideration by Congress and by the public. If these provisions are adopted, the result will be a huge boost for philanthropy philanthropy, the spirit of active goodwill toward others as demonstrated in efforts to promote their welfare. The term is often used interchangeably with charity. throughout the United States. Philanthropy and giving are part of the American tradition. These proposed changes in tax law honor that tradition in the most direct possible way. &uot;The President's proposal for increasing the maximum percentage of adjusted gross income that can be deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. for a gift of appreciated property will have a direct effect on the ability of community foundations to make grants to organizations that benefit the needy. We estimate that more than three quarters of the new funds started at our foundation are currently limited in size by the existing cap on deductibility. &uot;The President's proposal for lowering the private foundation excise tax Excise Tax 1. An indirect tax charged on the sale of a particular good. 2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS. Notes: 1. rate would provide a strong benefit to philanthropy's bottom line. It must be done, however, in such a way that oversight of private foundations -- which is in part financed by the excise tax -- is not reduced since it's critical for all foundations to maintain the greatest possible public confidence in the integrity of their operations. &uot;Finally, the President's proposal to provide a charitable tax deduction Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. for non-itemizers would help encourage growth in charitable giving by people of middle class or modest means. It is a net benefit to our society to encourage the growth of philanthropy across our economic spectrum. This proposal would help do that.&uot; The California Community Foundation, founded in 1915, is the second-oldest community foundation in the country. The foundation holds assets of more than $500 million and made nearly $60 million in grants in the fiscal year that ended June 30, 1999. |
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