(WASHINGTON, January 24, 2008) -- Diana Aviv, president and CEO of Independent Sector, today submitted a statement to the Senate Finance Committee at its hearing on “Strengthening America’s Economy: Stimulus That Makes Sense, Part II.” Ms. Aviv commended the Committee for its efforts to address concerns about the recent economic downturn and encouraged it to consider the full range of interests, including those of the charitable community and those it serves, as it develops an appropriate stimulus package.

Ms. Aviv focused on two measures that could help charities to obtain resources that they would put to use immediately: extensions of the IRA charitable rollover provision and of the food donation incentive, both of which expired at the end of last year. She highlighted how, by removing the barrier that had impeded older Americans from making charitable donations from their IRAs, the rollover had encouraged millions of dollars of new contributions. Those contributions provided an important stimulus to the economy by taking money from passive investment accounts and injecting it into projects such as building cancer centers, assisting food banks, and supporting adult day-care centers. Extension of the IRA rollover will also provide thousands of charities with extra resources they need to respond to the growing demand for their services from individuals adversely affected by the economic slowdown.

The food donation incentive permitted grocery stores, farmers, ranchers, small business owners, and restaurateurs to contribute wholesome food for hungry Americans while benefiting from the same access as corporations to the enhanced tax deduction for contributions of food inventory. Extending this incentive would make more food available immediately for people struggling to get by.

“The nonprofit sector plays a pivotal role improving our communities and serving the American people,” said Diana Aviv, president and CEO of Independent Sector. “Independent Sector encourages the Finance Committee to consider these two provisions that strengthen the safety net of services needed in this economy.”

The nonprofit sector is a major component of America’s economy, employing 9.4 million people, or approximately 7.2 percent of the U.S. economy, as of 2004. Yet the ability of the country’s 1.5 million nonprofit organizations to serve their communities may be limited by the economic downturn, which has damaged fundraising during previous recessions.

A copy of the statement is available here.

Learn more about how the IRA charitable rollover helps improve lives.

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Independent Sector is a nonprofit, nonpartisan coalition of approximately 550 charities, foundations, and corporate giving programs, collectively representing tens of thousands of charitable groups in every state across the nation. Its mission is to advance the common good by leading, strengthening, and mobilizing the nonprofit and philanthropic community.