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Donating gets less costly

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December 12, 2005

An anonymous donor to Thomas University is taking advantage of little known federal law to encourage major charitable donations. He has filed the $50,000 gift under the Hurricane Katrina Emergency Tax relief act.

The money will be used for scholarships, academic advancement, and campus improvements. University officials say the tax break used is meant for people who regularly donate certain amounts to specific charities. "A lot of us were giving to Katrina relief, United Way, the Red Cross, Salvation Army. And a lot of the people who donated had maxed out on their tax deductions," says Rick Monroe of TU's Office of Institutional Advancement.

The legislation increases the amount donors can deduct for income tax purposes from 50% of their adjusted gross income to 100%. It ends on December 31st.

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