The Open Hand

This year Americans can give more for less. The tax law for 1954 contains three important changes that will enable generous citizens to make larger contributions to church and charity, and Tax Expert Merle H. Miller ticks them off in the Christian Century of Dec. 22. Items:

1. Gifts to churches, conventions or associations of churches, educational organizations and hospitals can be lumped in a new category, tax-free up to 10% of gross income. The regular 20% deduction for charity can be applied to other kinds of donations, such as Community Fund, Salvation Army, etc. Thus the giver can claim deductions for gifts representing up to 30% of his income.

2. People who create trust funds for two or more years, the entire income of which must be paid to church and educational organizations, will not have to pay tax on this income, even though they get the property back after two years.

3. Corporations may give 5% of their income of any year tax free, even though payment is not made until up to 2 1/2 months after the close of the taxable year.

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