April 9, 2003
Smith Food Donation and Forestry Bond Provisions Included in Senate-Passed CARE Act
WASHINGTON, D.C.–Today, Senator Gordon Smith joined an overwhelming majority of his colleagues to pass the Charity Aid, Recovery, and Empowerment (CARE) Act of 2003. The bill includes key elements of the Smith-cosponsored Good Samaritan Hunger Relief Tax Incentive Act (S. 85), which creates a special rule allowing a charitable deduction for donations of food inventory.
According to a Brandeis University report, Oregon has the highest statewide prevalence of hunger. Last month, Smith announced that he will found a Senate Hunger Caucus to target the nation's growing domestic hunger rate.
"The agony of hunger is often silent and unseen, but it is in our power to do something about it," said Smith. "Enlisting our farmers, ranchers, and producers in the fight against hunger is one of the best ways to confront this serious problem."
The bill also includes Smith's amendment to allow non-profit organizations to issue tax-exempt bonds to finance the purchase of forested lands to be managed for conservation purposes with a limited amount of harvest. Community Forestry Bonds are new financial tools that conserve working forests while respecting landowner property rights and communities' economic well being. Tax-exempt revenue bonds are issued for the voluntary acquisition of forest and agricultural land by non-profit organizations. The low-cost bonds would be revenue bonds, backed by the revenue stream generated by the low-impact management of the land.
"Communities know best about how to manage their natural resources," said Smith. "Forestry bonds bring conservationists, business people, and all members of a community together to provide balance to forest health and meet community needs such as jobs, schools, and roads."
The CARE Act provides a number of tax incentives to encourage charitable giving, including deducting a portion of contributions for individuals who do not itemize, tax free contributions from Individual Retirement Accounts, and incentives for donations of food and books. It also provides 300,000 low-income, working Americans the opportunity to build assets through matched savings accounts to purchase a home, expand educational opportunity, or start a small business. In addition to the incentives for giving, the legislation provides additional resources for organizations serving those in need.
"With so many struggling in our sluggish economy, it is time to reinvigorate America's spirit of unity and community while lending a helping hand to our neighbors in their time of need," said Smith. "The CARE Act gives a vital boost to charities and will have an immediate impact in the lives of countless people."
Smith is a sponsor of the CARE Act, which has strong bipartisan support and is endorsed by more than 1,600 charitable organizations across the U.S. The bill will now be considered in the House of Representatives before becoming law.
###