Red Rooster Group is establishing a campaign called Deduct It! to change the IRS tax code to allow small businesses to claim a deduction for services they donate to registered 501(c)3 nonprofit organizations. We have created a blog to gain support for this issue: http://deductit.wordpress.com

Goods that are donated are allowed to be deducted, but not services. Allowing this deduction will:

1. Correct the fundamental discrimination against service businesses.
2. Create massive value for the nonprofit sector at a time when it needs it badly.
3. Encourage a culture of businesses contributing to the service sector.

This is the start of a nationwide movement to form a coalition to change this code. We appeal to all small business owners and associations:

• Creative service firms (Design, advertising, public relations)
• Consulting Firms (business, operations, marketing, strategic planning, fundraising, etc.)
• Architecture & Design Firms
• Law Firms
• Accounting and Financial Firms

We are in the process of galvanizing national grassroots support from both business and the nonprofit sector, drafting the legislation, and soliciting political support and sponsorship.

This blog will explore the considerations relating to this issues including:

• What types of businesses or services the deduction will apply to (for example, for small businesses up to $500,000 in revenue, and incorporated business, as opposed to individuals volunteering their time as a volunteer)
• The amount of deductions allowed and whether a cap is needed (most likely based on a percentage of gross sales).
• The value of the service being claimed (perhaps based on a previous service offered).

Join us in our push for this legislative change. We welcome your comments and feedback. More info at: http://deductit.wordpress.com

Howard Levy

The post RRG NEWS: RRG Launches Deduct It! Campaign appeared first on Red Rooster Group.

This article from ThirdSector discusses a new concept in Britain to help channel more money to those that need it. This solution addresses a growing concern in the United States as well that lower-income populations are not being served well by nonprofits.

Call to give philanthropists tax breaks when they donate to poor areas

Major donors should pay less tax if they make donations to charities based in disadvantaged regions, according to the Community Foundation Network.
The network represents charities that support local communities. The recommendation is one of 29 made in its Manifesto for Community Philanthropists, published this week.

The manifesto proposes the creation of ‘special giving zones’, modelled on social exclusion zones, that would encourage investment in services to disadvantaged communities. Any individual or company giving to charities that work in these zones would get favourable tax treatment.

Other recommendations include the creation of bank-gifting accounts to simplify giving and a £30m philanthropy infrastructure investment fund to help smaller charities set up online donation systems.

Stephen Hammersley, chief executive of the network, said the manifesto was drawn up to promote grassroots giving. “Community charities need to receive independent and sustained funding,” he said. “The manifesto is an exploration of possible ways they can achieve that.”

The post Empowerment Zones Channel Funds to Those in Need appeared first on Red Rooster Group.