Financial Life

By Travis Gable

Sometimes it seems that Congress moves at a snail’s pace when it comes to “doing the right thing”. Whether it be health care legislation or troop deployments in war zones, the in-fighting appears to go on forever; nothing gets done. But every now and then, perhaps once in a blue moon, Senators and Congressmen come together in agreement, and pass legislation as swiftly as can be expected. We saw it after 9/11, and they did it again last month. In response to the devastating earthquake that tore Port-Au-Prince apart, and the tremendous need for relief that followed, Congress searched for ways to encourage Americans to give generously and without delay.

So, on January 22, a special tax provision was passed to allow charitable contributions to organizations providing earthquake relief in Haiti, although actually made in 2010, to be deductible as a charitable contribution on your 2009 tax return. Since February 1 through April 15 is the height of “tax season”, Washington thought this might be a helpful nudge to spur Americans on to doing good.

So, if you donate to Haiti relief from January 11 through March 1, even by text message, you can deduct that donation, along with your other 2009 charitable giving, as an itemized deduction on your 2009 tax return. If you haven’t donated to Haiti relief, but you would like to, this week is the last week to do so and claim the donation on your 2009 return.

The estimates for rebuilding Haiti exceed $15 billion. American charities to date have raised a little over $1 billion. While $1 billion raised is a praiseworthy sum, the need is still great. If you have a close relationship with an organization that is providing Haiti relief, give to that charity. If you don’t, usaid.gov may be able to point you in the right direction.

Travis Gable is a CPA in Nashville, TN and sits as the 728b Foundation's Chairman of the Board of Directors. He and his wife Amy have one son, Mark.