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Jewish Press
Purim festivities make for fun see page 8
Serving Nebraska and Iowa Since 1920
S ADAR. 5753 Friday. February 26.1993
Vol. LXX No. 21 Omaha
conomic plan's impact on charitable giving not yet clear By Larry Yudelson NEW YORK (JTA) — Like much else about President Clinton's economic plan, its impact on Jewish philanthropy is unclear. Rajsing the top income tax bracket from 31 percent to an effective 39.6 percent may increase contributions to Jewish causes, since donors will get a larger deduction far their donation. Conversely, it could hurt fund-raising efforts, since, deduction or not, America's richest individuals — and biggest givers — will have less money in their pockets at the end of the year. The relationship between the top tax rate and charitable giving is unclear," said.Donald Kent, director of planned giving and foundation relations for the Council of Jewish Federations. "As the rate has gone down over the last 20 years, charitable gifts fix)m individuals have continued to go up." Besides, said Kent, "the charitable deduction is not the primary reason people give the gift they give." But Bob Smucker thinks the higher rates will mean higher giving. Smucker is director of governmental relations for the Independent Sector, an organization of 850 voluntary associations, foundations and corporate giving offices. "Research shows that as the marginal tax rate increases, people give more," said Smucker, "especially very wealthy people." And while Clinton, in his Wednesday night address announcing the plan, minimized the number of Americans to be affected by the income tax increases, the same wealthy minority whose tax rates will go up constitutes the financial backbone of federation and other charitable campaigns. According to the 1990 National Jewish Population Study, the median annual income of Jews was $39,000 — a figure that naeans half of American Jews will feel any bite from the Clinton plan at the gas pump, rather than on their tax returns. But the 1.7 percent of Jewish households earning (200,000 or more, who will see their top tax rates rise to 36 or 39.6 percent, are the backbone of Jewiah communal institutions. They represented half of those responding to a 1991 survey of CJF board members and lay presidents of local federations. TTiey constituted a third of a broader strata of local Jewish leadership surveyed by the American Jewish Committee.
And they are basically the 1.6 percent of all federation donors who in 1987 gave $10,000 or more, representing 57 percent of the campaign. The news for their taxes under the Clinton plan, however, is not all bad. According to Kent and Smucker, Clinton's proposal restores a tax break for donors that was eliminated in the 1986 tax refonn under President Ronald Reagan, partially restored under President George Bush in 1990 and then allowed to expire last summer. At issue was the tax deduction for appreciated property dpnated to charity, such as real estate or stock. Until 1986, the appreciated value could be deducted from income. But under the current rules, taxpayers subject to the Alternative Minimum Tax can only deduct the price they paid for the item they donate, not its present value. "We know of several specific mtgor gifts that have been delayed because of this issue," said Kent. "We're talking a significant difference in the amount they can leverage gifts." The deduction is "very important for the Jewish community," said Smucker, "because the lead gift in almost any capital campaign would be a gift of stock.". Kent cautioned donors — and not just the very wealthy — that hand in hand with this provision will come a demand for better record keeping. Under a compromise worked out between the nonprofit community and the Treasury Department last year, and expected to be part of the current package, charitable deductions over a certain limit, perhaps as low as $100, can only be taken with a receipt. This is to curb the practice of donors improperly deducting benefits received in exchange for their donations, such as the meals served at benefit dinners. The Tretlsury estimates that such deductions cost $1 billion or more in lost tax revenue annually. Under the compromise, benefits would be listed on the receipt as subtractions from the total donation. One area where the Clinton plan holds bad news for philanthropies is the "3 percent floor." This provision eliminates deductions, including charitable ones, equal • to 3 percent of adjusted income above $ 100,000. For someone with an adjusted income Df $150,000, the result would be to disqualify $1,500 worth of deductions. For residents of New York and other high-tax states, that might not mean much. . But in states with low taxes, "that has clearly and directly had an effect on charitable giving," said Kent.
B Committee accepts applications for Newman grants By Claudia Shemuui public relationa director The PountUtlon The Esther K. Newman/Carolyn KuUy Newman GranU Committee Is currently accepting grant appllcationa from Jewish organizations and inatitutions providing pregramming for children, teeh•gera and young adult* (thoee individuals under thf ••• of 23 who are not attending a college or univeraltr). Meordlng to committee chalrpenon, Myra Obarman. Both Newman memorial fund* are adminlilared by The Foun•Uon of the Jewish Fed•Uon of Omaha. [Fund* trmu the Eather „. Newman Fund are lloeated for (hose pro^tma designed to strengthen Jewiah Identity and valuee through educational, rellglout, cultural, •ocial or recreational activities, Ms. Oberman •aid She added that the
committee is particularly interested in new and Innovative programming. Grants from the Carolyn Kully Newman Fund benefit progrsmmlng ifor families with children kiivdargarten age or yoiuiger, Ms. Oberman said. Money may also be allocated to purchase equipment and material needed for those pnijecU. Among the criteria for lelecting grant recipients are the community value of a program, including Ita special or unique featurea; an agtney's ability to GUiy out the purpoaii and goals of the program or service; and the costbenefit considerations of a propwnSponsoring organisation* are ancouraged to participate flnancially or In-kind, M*. Oberman noted, adding that she hopas orgsnitatlon* will work t<^th*r to provide programming that meet*
the needs of a cross-section of Jewish youth. The grants committee, responsible for the administration and allocation of monies (W>m both funds, is comprised of rerpreeentatives from the Budget and Allocations committee, the Buresu of Jewiah Education, the Jewish Community CenUr, Beth Israel and Beth El synagogues, Temple Israel, the Priadel Jewish Academy, B'nsi B'rlth Youth Organisation, The Foundation and the Jewiah IWeraUeo Beard. The deadline for submitting applleitlona Is Friday, March 19; the. committee will meet April 1 to determine ewsrds, Ms. Oberman said. Application forms are BvailabI* at The Foundation office. Psrson* needing asslsUnoe completing the forThe F< ment << in Bernit>U.
Smucker agreed, saying that the current floor, which is due to expire in 1995 but Clinton would make permanent, paves the way to ultimately eliminate the charitable deduction altogether. Smucker expects his group will fight to exclude charitable giving from the 3 percent floor.
1993 UJA/Federation Campaign:
How we're doing...
2,650,000
G
2.500.000 2^.000 2,300,000
ANNUAL CAMPAIGN $2,172,000
Soufce: Jewuh Fedewion of Oimlu
LOCAL APPEAL - "If you have yet to make your gift to the 1993 UJA/Federation Campaign, please help ua move our thermometer over the top." - Howard Bloom, Federation Director
Ruling on Kashruth worries Orthodox By Debra NuHbaum Cohen NEW YORK (JTA) — The U.S. Supreme Court's decision to leave standing a New Jersey court ruling that voided the state's kosher food regulations has some in the Orthodox community concerned about the implications for kosher consumers in New Jersey and around the, oouatry. The July 1992 decikion by the New Jersey StaU Supreme Court ruled that the state's kosher food regulations involved an '•ntanglemant" of government and religion and were thus unconstltutionsl. HM rsgulations defined kosher as food prepared according to Orthodox Jewish tradlUon which, dcnpltp Rnnaral consensus Jewish com> many normative aspects of kashrut, rnn varv in ntianm frorii
one segment of the observant Jewish community to the next The Supreme Court decision could have national implications if any of the 22 other sUtes with kosher regulations has them challsnged on constitutional grounds. But that Is unlikely, said observers, because of the very specific wording of the New Jersey regulations and the more gener' al phrasing of most other states' statutes — which leave the definition of kashrut to community consensus — and because of the higher sUndards of proof required to prosecute In other states. In New York snd Maryland, for exsmple, prosecution for abrogating standards of kaithrut n<qulrM pronf to sell non-koeIi< », according to Marc Htom, lotfat director of the
American Jewish Con'^ gress.This "much higher standard of proof means that the state is no? compelled to decide theological questions," said Stem.