Don't Force Charities to Bear the Cost of Corporate Tax Breaks; Goodwill Urges Rejection of JOBS Act's Vehicle Donation Provision

ROCKVILLE, Md.--Oct. 4, 2004--Goodwill Industries International urges Congress to reject burdensome tax revenue offsets that hurt charitable organizations as it considers the JOBS Act (Jumpstart Our Business Strength).

The Senate version of the bill contains a provision that would change the federal tax treatment of vehicle donations, with an aim to generate tax revenues that offset the tax breaks the JOBS Act offers to corporations. The Senate amendment, which is sponsored by Senator Charles Grassley (R-IA), calls for onerous reporting requirements and unreasonable deduction limitations on vehicle donations.

"Charities such as Goodwill have benefited greatly from vehicle donation programs," says George W. Kessinger, President and CEO of Goodwill Industries International. "Ultimately, the Grassley provision could reduce or eliminate vehicle donations, which fund vital services from job centers to food banks and homeless shelters in communities across the country."

Vehicle donation programs represent a growing source of revenues for U.S. charities. Each year, Goodwill Industries earns an estimated $12 million from donated vehicles, enabling the organization to provide intensive career services for an estimated 5,000 welfare recipients, or 2,500 people with disabilities. In addition, several Goodwill agencies match donated cars with individuals lacking reliable transportation to work.

"As conferees from the House and Senate negotiate the JOBS bill, Goodwill hopes legislators will act reasonably and responsibly by excluding the Grassley amendment on tax deductions for motor vehicle donations," says Kessinger. As an alternative, Goodwill Industries proposes that taxpayers be allowed to deduct a fair amount for the value of the vehicle, using one of the accepted used car guides, or to obtain an independent appraisal.

Goodwill Industries International is a network of 207 community-based, independent member organizations in the United States, Canada, and 22 other countries. Each organization serves people with disabilities, welfare recipients, dislocated workers and other job-seekers by providing job training and employment services, as well as job placement opportunities and post-employment support. In 2003, more than 616,000 people benefited from Goodwill's career services.