Souder, Fund panelists at BHI DC breakfast

from NewsLink, Vol. 2, No. 3, Spring 1998

 

U.S. Congressman Mark Souder (R-IN) and John Fund, Wall Street Journal Editorial Board Member, were panelists with BHI Executive Director David Tuerck at State Charity Tax Credits: The Next Step in Welfare Reform. BHI hosted the buffet breakfast and panel discussion on May 22 in the Longworth House Office Building on Capitol Hill in Washington, DC.

The panel provided an overview of a Renewal Alliance proposal to encourage adoption of charitable tax credits at the state level.

Thirty-two states either have or are proposing legislation to offer tax credits for individual contributions to charities that help the poor. These state-based charitable tax credits offer a radical approach to welfare reform, one that devolves from government to private charities the job of providing welfare services and ending dependency.

The Renewal Alliance proposal would accelerate the spread of this approach. It would allow states to use up to 50% of their welfare block grants to reimburse themselves for revenue lost by adopting a charitable tax credit. States could use their block grants to replace existing welfare programs with taxpayer-funded private programs.

David Tuerck presented early results of BHI's survey of policy makers, charities and opinion leaders on the effects of Michigan's Community Foundations Credits and Homeless Shelter/Food Bank Credits. Those results showed a perception that these programs have increased charitable giving and are making it possible for shelters, food banks and other beneficiaries to expand their programs.

Over the coming months, BHI will survey more than 20 states with tax credit programs to determine their effects on donors, recipients, nonprofit organizations and the state economies.

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