Charities May Benefit from New Special Tax Breaks; Donations to Any Nonprofit -- Not Just Those Related to Hurricane Relief -- A
November 15 2005 - 6:00AM
Business Wire
Taxpayers have until year's end to take advantage of new tax breaks
for charitable contributions, thanks to the Katrina Emergency Tax
Relief Act of 2005 (KETRA). The time constraint on tax incentives
could lead donors to contribute online to hurricane relief -- and
causes unrelated to hurricane relief -- as the year comes to a
close, according to Kintera(R), Inc. (Nasdaq:KNTA), the leading
provider of software as a service to the nonprofit industry. In
general, the Act provides for individuals who itemize and make cash
contributions to nonprofits between August 28 and December 31,
2005, to deduct such contributions up to 100 percent of their
adjusted gross income (AGI), taking into account their other
contributions. Outside of this legislation, the amount of
contributions such a donor can deduct is limited to 50 percent of
their AGI. Donations to any public charity -- not just those
related to Hurricane Katrina -- are not subject to this limit if
made in this period. The measure generally also waives the 10
percent taxable income limitation on corporate donations to public
charities for donations related to Hurricane Katrina made within
the August 28 to December 31 period. For the Act to apply, the
taxpayer must make a special election. "This new law could be
interesting for charitable organizations," said Harry E. Gruber,
M.D., CEO of Kintera. "With only six weeks left until year's end,
donors don't have time to wait around for mailings from hurricane
relief organizations. They'll be heading online to research -- and
donate -- to charitable organizations focused on rebuilding in
hurricane-ravaged areas." Earlier this year, a tax law was enacted
to encourage contributions for tsunami relief efforts. The law
allowed donations made toward tsunami relief during January 2005 to
be deducted in 2004. Based on online donation transactions from
Kintera's nonprofit clients involved in disaster relief, the
company reported that on January 31, the amount given to tsunami
causes was more than four times the average daily amount
contributed to tsunami causes between January 21 and January 27,
2005. Kintera estimated that by the end of January, more than $350
million in online donations were collected by disaster relief
organizations after the tsunami struck. Kintera supports numerous
charities that use the company's Web-based software to raise funds
online for a variety of causes including hurricane relief. For a
list of nonprofits involved in hurricane-related or general
fundraising, please visit www.kintera.org. About Kintera, Inc.
Kintera(R), Inc. (Nasdaq:KNTA) provides an online solution to help
nonprofit organizations deliver The Giving Experience(TM) to donors
-- including giving convenience, financial transparency, feedback
about the social impact of their gifts and a sense of belonging and
appreciation. More than 15,000 accounts in the nonprofit,
government and corporate sectors use Kintera's "software as a
service" innovations, including the Friends Asking Friends(R)
fundraising program and Kintera Sphere(TM), an enterprise-grade
software platform that provides a secure, scaleable and reliable
system for customer relationship management (CRM), a Web content
management system (CMS), eMarketing and directed giving
applications. Additionally, Kintera FundWare(R) provides
award-winning financial management software developed for nonprofit
organizations and governments. Kintera also provides the Kintera
GivingFund payment option offering donors Internet convenience for
initiating grant requests from their Donor Advised Funds (DAF).
Organizations sponsoring donor advised funds as well as recipient
nonprofits and foundations are now able to provide improved
customer service to philanthropists through this new, innovative
way to make major gifts online. A one-time DAF, CharityGift(TM), is
available for purchase at Kintera's The Giving Communities(TM) Web
site at www.kintera.org. For more information about Kintera's
software and services, visit www.kintera.com. Kintera, Kintera
Sphere, Friends Asking Friends, The Giving Experience, The Giving
Communities, GivingFund, CharityGift and FundWare are either
registered trademarks or trademarks of Kintera, Inc. in the U.S.
and/or other countries. Forward-Looking Statements In addition to
historical information, this press release contains forward-looking
statements (including, without limitation, express or implied
statements regarding the adoption of software solutions by
nonprofit organizations) that involve risks and uncertainties.
These forward-looking statements represent our estimates and
assumptions only as of the date hereof. These statements reflect
our current views with respect to future events and are based on
assumptions and subject to risks and uncertainties. These
statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements to be materially different from any future results,
performances or achievements expressed or implied by the
forward-looking statements. These risks and uncertainties include,
without limitation: our limited operating history; our history of
losses; our dependence on increased acceptance by nonprofit
organizations of online fundraising; lengthy sales cycles for major
customers; our need to manage growth; risks associated with
accounting for and processing large amounts of donations; the
rapidly changing technologies and market demands; and other risks
identified in our filings with the Securities and Exchange
Commission. Given these uncertainties, you should not place undue
reliance on these forward-looking statements.
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