Predictable, really: new tax bill shuns charities, despite calls for reform.

It should come as no surprise to readers of this column that the new tax cut bill has nothing in it for charities. It has been predicted here for quite some time. Sure, there's a companion bill with some charitable provisions. But just about everyone in Washington, D.C., knows that particular piece of legislation is dead on arrival.

The charitable sector has taken a beating at the hands of the Senate Finance Committee for the past two years. Committee Chairman Charles Grassley, R-Iowa, has made it a personal mission since his first days in Congress to eliminate the charitable deduction in every form, except the 501(c)(3)s tied loosely to the political parties. While he has never espoused that publicly, it's quite clear by his actions.

Grassley has pushed umbrella organizations for his particular brand of "reform," which he has said includes alleged abuses with donor-advised funds, supporting organizations, and nonprofit credit counseling services, non-cash donations, such facade easements and other real estate transactions and transactions, such as those dealing with life insurance and corporate tax shelters.

At Grassley's urging, Independent Sector created its Panel on the Nonprofit Sector to push for "reforms" in the manner in which charities operate. Many in the sector capitulated, agreeing publicly that the sector needed greater transparency and accountability. Millions of dollars and a thick report later, none of the provisions are in Grassley's tax bill.

Many organizations pushed back, demanding that laws on the books be enforced before more are passed. That splintered support in the sector, just what those seeking to eventually eliminate the deduction had planned.

This is not the first time the sector has been rallied by Congress only to be left as a punchline. The CARE Act passed the Senate 95-5 in April, 2003. The House of Representatives passed companion legislation, the Charitable Giving Act, H.R.7, by 408-13 in September, 2003. It became the first bill to not be allowed to go to conference after passage by both chambers and continues to languish.

But, the provisions of the CARE Act changing the way to account for car donations passed in another form, raising revenue for the federal government.

That's what this "reform" is about, too. The point is not to "reform" charities but to eliminate the deduction. What this has done is ignite hostility between charities. It's the old divide and conquer strategy.

The seed is now planted in the minds of many Americans that they need to be suspicious of charity. On the large scale, the nation is at the start of another hurricane season and some of the American Red Cross's corporate supporters have backed away because of Grassley's very public smears of the charity. When that storm hits, and it will, who is going to respond? It certainly won't be the federal government. It's already proven it can't do it.

You've done a heck of a job Chucky.