Only a maximum of 30 percent of the charitable organization s budget can be spent on administrative expenses, expenses to influence legislation, fundraising activities, and litigation costs, among others. We want the charitable contribution to go to the poor, not to increase an administrator s salary. President Bush s tax proposal touches on this objective by suggesting that a charitable tax deduction be allowed for people who do not itemize their deductions. The President also has encouraged the States to provide a charitable tax credit. This legislation goes one step further by offering the credit at the federal level.
Private charities succeed because they are community driven and stress personal responsibility.
These local food banks and shelters become personally involved in helping change lives. I believe a better way to help the poor is through local organizations that are designed, implemented, and staffed by residents of the neighborhoods they serve. Also, the tax credit will put more money on the table for programs that help the poor and create a more competitive atmosphere. Each organization will be overseen and judged, not by Washington, DC, but by the community and the people giving the money to the charitable organization. This will in turn improve services to the poor.