Evening star., 1934-04-15
CHARITY GROUPS
HIT BY TAX BILL
Organizations "Interested in
Legislation" May Lose
Exempt Privileges.

eral revenue bill, as 1t passed the
Senate last week, Is changed in con-
ference. charitable organizations, in
cluding the Washington Community
Chest, will find it more difficult than
ever before to obtain contributions
to carry on their work
The joker lies in a 25-word amend
ment aimed at organizations whose
principal activities are either parti-
san politics or lobbying, but as it is
worded at present several Senators
have agreed, donations to any chari-
table organizations interested in legis-
lation may not hereafter be deducted
from income tax returns.
The Washington Community Chest
has several such member organiza-
tons. The American Legion. the
District of Columbia Congress of Par
ents and Teachers, the Child Welfare
Society, the Council of Social Agen-
cies, the Juvenile Protective Associa-
ton, the Social Hygiene Society are
some of those directly interested in
the enactment of welfare laws or
appropriation measures. Because of
this interest and because of activi-
ties directed toward a realization of
their wants, the bill would prevent
all income tax deductions for gifts
made either to the organizations di-
rectly or to them through the Com
munity Chest.
Fault Lies in Wording.
Four members of the Senate Finance
Committee, which offered the amend
ment, have agreed the fault lies, not
in the purpose Of the measure. but
in its ambiguous wording, and for
that reason they have agreed TO re-
write the amendment when the bill
reaches conference.
AS the bill was originally presented,
paragraph (o) t2) of section %, pro-
vided for deductions of all contri-
buttons to "a corporation, or trust,
or community chest fund, or founda-
ton. organized and operated exclu-
sively for religious, charitable, scien-
tiflc, literary or educational purposes,
or for the prevention of cruelty to
children or animals. no part of the
net earnings of which inures to the
| benefit OF any private shareholder or
individual"
The committees amendment, as it
was reported cut to the Senate, added
the following words: And no substan-
tial part Of the activities of which is
participation in partisan politics or is
carrying on propaganda, or otherwise
attempting, to influence legislation"
At present the measure is inter
preted as preventing the deduction for
income tax purposes Of all contribu-
tions to the Child Welfare Society and
Juvenile Protective Association be-
cause both of them are at present in
terested and working for the enact
ment Of new child adoption law for
the District
Aimed at Political Groups.
Similarly. all national or State or
CARNATIONS that are actively working
for the ratification of the child labor
amendment would be in the same cate
CORY, although, as Senator Harrison,
chairman of the Senate Finance Com
mittee, explained, the amendment is
directed against political organizations
and such lobbying agencies, for exam
Pile, as the Navy League or the Ma
tional Economy League. and not
against welfare and charity organiza-
tions.
In reporting out the bill the Finance
Committee stated in its report: This
change made by your committee pro-
hibitS the deduction for contributions
made to an organization SubStan-
tial part of whose activities is par
ticipation in partisan politics or in
carrying on propaganda, or otherwise
attempting to influence legislation"
When the amendment was first dis
cussed on the floor of the Senate, Sem
ator Reed, Republican, of PennSyl-
vania was the first to object.
"As that amendment is worded," he
said, ''it would apply to the Society
for the Prevention of Cruelty to Chill
dren, to the Society for the Preven-
ton of Cruelty to Animals, or any of
the worthy institutions that We do not
in the slightest mean to affect"
"In considering the amendment"
Chairman Harrison replied, the senti-
ment of the committee was that the
provision should apply to any organi
Zation that is receiving contributions,
the proceeds of which are to be used
for paganda purposes or to try to
influence legislation.
Stand Agreed to BY Reed.
"Of course that would affect some
war organizations, but personally l
see no difference between one organi-
zation that may be on one side of the
fence getting contributions to propa-
gandize and influence legislation and
being permitted to proceed without
interference, while at the same time
preventing one that might have
different viewpoint from receiving or
making use of contributions for the
same purpose"
Senator Reed agreed, but he added:
There is no reason in the world
why contribution made to the N6-
ductable as if it were a charitable
contribution if it is selfish one made
to advance the personal interests of
the giver Of the money. That is what
the committee were trying to reach,
but we found great difficulty in phras-
ing the amendment I do not reproach
the craftsmen. I think we gave them
an impossible task, but this amend
ment goes much further than the
committee intended TO CO."
Senator Couzens, Republican, of
Michigan, inquired If the amendment
would affect tuberculosis societies and
children's welfare societies, which, he
pointed out, devote good deal of in