DORGAN ANNOUNCES LEGISLATION TO HELP NORTH DAKOTA CHARITIES WEATHER NATIONAL ECONOMIC CRISIS

Bill is part of wider plan to put American economy back on track

Wednesday, November 26, 2008

CONTACT: Justin Kitsch
or  Brenden Timpe
PHONE: 202-224-2551

(BISMARCK, N.D.) --- Flanked by leaders of area nonprofit organizations, U.S. Senator Byron Dorgan (D-N.D.) said Wednesday he will push in Congress for a comprehensive plan to put the nation’s economy back on track – including legislation that will enhance the ability of the nation’s charitable community to help those hurt most by the economic downturn.

Dorgan said that while North Dakota’s economy has, for the most part, been shielded from the harshest effects of the current economic crisis, its charitable organizations have not been so lucky. Nonprofits have told Dorgan that their endowments have been substantially reduced by the drop in the stock market. In addition, many fundraising operations have seen a decrease in giving even as requests for services have increased.

Dorgan said now is a crucial time to expand a charitable giving tax incentive he helped establish in 2006. Dorgan’s initiative allows eligible taxpayers to give money directly from their IRAs to charities without a tax penalty.

According to one survey, the program that Dorgan created has resulted in more than 8,500 IRA contributions to approximately 900 charitable organizations nationwide – totaling nearly $140 million. But, that provision expires at the end of next year, and it needs to be expanded, according to the Senator.

“Our state has been fortunate when it comes to avoiding the worst effects of the economic crisis,” Dorgan said. “But our charitable nonprofits are the last line of defense for low-income seniors and families, and we need to make sure they remain strong. The tax-free charitable IRA has proven successful in encouraging charitable donations, and at a time when many Americans are feeling the weight of economic collapse, we should be expanding it so we can bring even more help to those in need.”

Dorgan’s charitable IRA incentive is set to expire at the end of 2009. Permanently extending and expanding the program, as provided in legislation he has authored, the Public Good IRA Rollover Act, S. 819, is one piece of a wider economic stimulus plan he is calling for to help the economy recover. He is also calling for:

• Investments in projects that will put Americans to work. To inject life into the economy and create new jobs, Dorgan is calling for significant investments in the nation’s infrastructure. The U.S. economy has lost 1.4 million private-sector jobs so far this year, but Dorgan’s plan would put people to work by funding road construction, renewable energy and water projects, investments in communication infrastructure, and other programs.

• Tax incentives for business investments. Dorgan’s plan would also include tax incentives that would provide incentives for businesses to make new investments would help them preserve and create jobs. He has proposed new investment tax credits for certain investments and shortened depreciation for some property and equipment during a specific purchase period.

“This economy is in a deep rut, and we have to more than just hope things will get better,” Dorgan said. “We need a robust recovery plan that will put Americans to work. That’s the way to get our economy going again, and I’m going to be pushing hard for this plan when the Senate comes back into session.”

The Public Good IRA Rollover Act has wide bipartisan support, with 29 U.S. Senators joining as co-sponsors. It also has been endorsed by nearly 900 charitable organizations nationwide.

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