Katrina Tax Break Spurs $11 Billion in Donations

“A tax break that was part of a relief package to aid victims of Hurricane Katrina,” The New York Times reports, “spurred $11 billion in donations to charity . . . more than triple what had been originally projected.”

In 2005 total charitable giving jumped an inflation-adjusted 6% from the preceding year. When figures for last year emerge we'll see whether total giving for 2006 suffered as a result.

Because of the unexpected highly cost of lifting the 50% limit on cash donations in 2005, The Times observes, Congress may be reluctant to give donors other incentives,. If so, hope dims for continuing the provision that allows donors who are at least 70½ years old to transfer up to $100,000 from their individual retirement accounts directly to charities, tax free.