IRS notice 2001-69 exempts the value of donated leave time from taxation, as long as the donation occurs before January 1, 2003. This allows for tax-exempt donation of the cash value of leave days by employers, if an employee elects to donate leave time. Employees cannot, however, claim the value of the donated leave time as a charitable deduction. The IRS is seeking comments on this notice until February 1, 2002. Email comments to notice.comments@m1.irscounsel.treas.gov.

Nonprofits should weigh in on the economic stimulus bill being considered in Congress. It can have a huge impact on the work we do. Take action on this Alert here. OMB Watch believes the stimulus package should include items that create an incentive to spend immediately. It should not be permanent and or be a cover for providing further tax breaks to wealthy individuals or corporations.

OMB Watch has prepared a chart comparing the many tax bills introduced to help charities. 107th Congress: Proposed Legislation on Charitable Giving Bill Number Sponsor Non-itemizer Deduction IRA Rollover Carry Over Capital Gains Property Increase Deduction Limits Expand Deduction for Food Donation of Land or Easements Art, Medical, Education Other Issues S 35 Title VI Gramm Phased in, no floor. Deduct up to amount of standard deduction At 59 1/2     Increase corporate ceiling from 10% of income to 15%       Tax Cuts S. 205 Hutchinson   At 59 1/2         S. 298 McConnell