TAX Deduction for donors:

San Juan, PR: Recently, 75 Act was passed extend contributory deductions to individuals who give donations from taxable year 2001. But some restrictions apply.

The Puerto Rico chapter of the "National Society of Fund Raising Executives" (NSFRE) recently held a seminar that included a panel entitled: Regulation, control and opportunities in fundraising to the law of the new incentives of 75 Act. Panelists were attorney Eduardo Negron, subsecretario of Departamento de Hacienda, Mrs Caridad Pierluisi from NSFRE and Rafael Torrechiva, consultant.

For years, "Fondos Unidos de Puerto Rico" an other organizations lobbied for greater incentive to taxpayers who make donations in personal character.. According to statistics from donations in the United States,  most of the money comes from individuals.

Thanks to the efforts of NSFRE, consultants, letters of support sent to the Legislature and the Governor by "Fondos Unidos de PR", and other organizations, we will have an incentive that may help in fundraising.

ABOUT 75 ACT

• It will be effective for the taxable year 2001 onwards.
• Only applies to taxpayers who paid using the long form.
• The Act defines five groups of nonprofits that qualify to receive the donation.
• he organization has to receive the tax exemption of the Department of Finance, as the case of the García Rinaldi Foundation.
• It follows that the donation exceeds 3% of adjusted gross income, or deducted 33%.
• The benefit or contributory savings for every dollar donated is approximately 11%.
• It will organize a committee to prepare a regulation.