President’s Budget Plan Proposes New Incentives for Charitable Giving Among President Bush’s tax relief proposals are three which Administration officials predict will benefit charities. The President’s three part plan to increase charitable giving includes: allowing nonitemizers to deduct charitable donations; permitting tax-free withdrawals from IRAs for charitable donations; and increasing the deductibility of corporate donations to charitable organizations.
According to Administration sources, the nonitemizer charitable deduction does triple duty: It provides tax relief for nonitemizers (mostly low- and middle-income taxpayers); improves tax fairness by allowing all taxpayers, including the 85 million who do not itemize, to benefit from the deduction; and, by creating an incentive for additional giving, it encourages individuals and families to support the work of charities.
Several recent reports have shown the significant positive impact that allowing nonitemizers to deduct charitable contributions could have on the non-profit sector. A PricewaterhouseCoopers report, commissioned by Independent Sector (of which the March of Dimes is a member), estimates that enactment of the nonitemizer charitable deduction would stimulate more than 11.7 million individuals to contribute.
"The Foundation and other charities could gain from the President’s proposal," said March of Dimes President Dr. Jennifer L. Howse. "Not only is it projected to raise contributions, it adds an entire new group of donors."
More than 450 organizations, including the March of Dimes, have endorsed the proposal, which was announced as part of the President’s new initiative to strengthen faith-based and community organizations. Along with other groups, the March of Dimes signed a letter supporting the deduction, saying it recognizes "the generosity and sacrifice made every day by tens of millions of Americans."
March of Dimes Testifies to House Appropriations Subcommittee Testifying on March 21, the March of Dimes encouraged the House Appropriations Subcommittee on Labor, Health and Human Services and Education to increase funding for federal programs that advance the Foundation’s mission.
Presented by Deborah L. Neale, Member, Ohio Chapter Executive Committee, and Chair, Ohio State Public Affairs Committee, the Foundation’s testimony outlined research priorities related to the prevention of birth defects and infant mortality. The Foundation recommended FY 2002 funding increases for Federal programs central to the health of mothers, infants and children, including biomedical research, birth defects and developmental disabilities prevention, and access to health care for mothers and children. The Foundation requested continuing the five-year goal of doubling funding for the National Institutes of Health, including a 16.5% increase for NIH in FY 2002.
Neale recounted last year’s enactment of the Children’s Health Act of 2000, which added a new Center on Birth Defects and Developmental Disabilities to the six Centers that make up the Centers for Disease Control and Prevention (CDC). She reported that implementation is on schedule, and urged subcommittee members to commit the FY 2002 resources needed to support the Center’s activities. The March of Dimes recommended adding $8 million to the budget for the eight regional birth defects research and prevention centers where groundbreaking research on spina bifida, heart defects, Down syndrome, and other serious, life-threatening conditions present at birth is underway.
In addition, Neale said the Foundation supports CDC’s plan to create up to five new regional research centers to study developmental disabilities, such as autism, cerebral palsy, mental retardation, and hearing and vision deficits. She said the funding needed to establish these centers is $5 million. Neale also reported that CDC is currently conducting a modest folic acid education campaign to reduce the number of babies born with neural tube defects. According to the March of Dimes commissioned Gallup survey, only 34% of women of childbearing age reported taking a multivitamin with folic acid on a daily basis. The Foundation recommended an appropriation of at least $5 million for FY 2002 ($20 million by 2006) to promote this lifesaving intervention more effectively.
The March of Dimes also recommended that every baby born in the U.S. receive, at a minimum, a core group of eight metabolic screening tests and hearing screening. To support this effort the Foundation recommended an increase of $3.5 million to allow CDC to provide states the technical support needed to establish these programs. In addition, the Foundation recommended completing the task of polio eradication worldwide, stating that a $15 million increase in funding for global eradication will save lives and reduce unnecessary health-related costs.
Finally, the Foundation endorsed continued support of programs that improve access to health care for mothers, infants and children. On behalf of the Foundation, Neale stated that the Maternal and Child Health block grant complements Medicaid and the State Children’s Health Insurance Program by targeting services to underserved populations and areas. The March of Dimes recommended funding the block grant at the authorized level of $850 million.
Neale also stated that the Consolidated (Community) Health Centers are also an important source of obstetric and pediatric care. The Foundation supports $175 million additional funding to increase both the number of centers and to improve the scope of perinatal services offered. Finally, Neale pointed out that HRSA funding currently is focused on a national campaign to ensure that all newborns receive a hearing screening prior to hospital discharge. The March of Dimes stated that the 2001 funding level of $8 million should be expanded with an additional $4.5 million appropriation to enhance this campaign.
MARCH OF DIMES FEDERAL FUNDING PRIORITIES FY 2002 (Dollars in Millions)
PROGRAM
FY 2001 FUNDING
MARCH OF DIMES RECOMMENDATION FY 2002
Centers for Disease Control and Prevention (Total)
3,868
---
Center on Birth Defects and Developmental Disabilities
68
---
Birth Defects Research and Surveillance
17.6
27.6
Folic Acid
2.5
5
Developmental Disability Research and Surveillance (autism, mental retardation, cerebral palsy)
6.7
9.7
Fetal Alcohol Syndrome
9.6
9.6
Newborn Screening
---
1.5
Newborn Hearing Screening
6.3
9.8
Immunization
529
664
Safe Motherhood Initiative
14
14
Polio Eradication (CDC Activities)
91.4
106.4
National Institutes of Health (Total)
20,300
23,700
National Institute of Child Health and Human Development
976
1,137
National Human Genome Research Institute
382
445
National Center on Minority Health and Disparities
130
151
Health Resources and Services Administration (Total)
5,525
---
Maternal and Child Health Block Grant
714
850
Healthy Start
90
90
Consolidated Health Centers
1,169
1,344
Newborn Hearing Screening
8
12.5
New CDC Center On Schedule; Names Acting Director The Centers for Disease Control and Prevention (CDC) Director Dr. Jeffrey Koplan announced last month that the new National Center on Birth Defects and Developmental Disabilities would be operational by the April 16 deadline. The new center was created by the Children's Health Act of 2000, signed into law on Oct. 17, 2000.
Dr. Koplan said that José F. Cordero, M.D., M.P.H., will serve as Acting Director. Dr. Cordero brings extensive public health experience in the field of birth defects and developmental disabilities. In 1973, he obtained his medical degree from the University of Puerto Rico, then completed residency training in Pediatrics at Boston City Hospital and a fellowship in Medical Genetics at the Massachusetts General Hospital.
In 1979, Dr. Cordero obtained a Masters in Public Health from Harvard University and joined CDC as an Epidemic Intelligence Officer. He was assigned to the Birth Defects Branch, where he spent more than 15 years of his CDC career addressing birth defects, developmental disabilities and other child health issues. He is also a former President of the Teratology Society, a professional research society devoted to the prevention of birth defects. Since 1994 Dr. Cordero has served as Deputy Director of the National Immunization Program through which he has focused on eradicating rubella (German measles), a major cause of birth defects that can be prevented through vaccination.
Virginia Governor Signs Legislation on Newborn Screening and S-CHIP Virginia and National Capitol Area Chapter volunteers supported legislation to add Congenital Adrenal Hyperplasia (CAH) to the tests required to be performed on every newborn in the Commonwealth, including testifying before the House Committee on Health, Welfare and Institutions. SB 1007, signed by Gov. James Gilmore (R) on March 15, makes testing for this disorder effective July 1, 2002.
With the addition of CAH, Virginia will conduct all of the eight March of Dimes recommended metabolic newborn screening tests and newborn hearing screening.
The Virginia chapters also lobbied on behalf of the State Children's Health Insurance Program (S-CHIP) to increase health care coverage for infants and children. Volunteers and staff met with state legislators to support a number of S-CHIP bills recently signed into law by Gov. Gilmore. Legislation enacted includes establishing the Family Access to Medical Insurance Security Plan (FAMIS) and amends the Virginia Children's Medical Security Insurance Plan to increase from 185% to 200% of the federal poverty level ($29,260 for a family of 3) the threshold of eligibility of coverage; and reductions in the waiting period for previously insured children.
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