TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Friday, September 30, 2005

Leave Donation Program to Benefit Hurricane Katrina Victims

Irs_logo_130 The IRS announced today (IR-2005-113) that it has joined with a broad coalition of business and charitable associations in a partnership aimed at educating the nation’s employers about a Leave Donation Program benefiting Hurricane Katrina victims:


Benefit for Employees:
These programs provide employees with a way to help Hurricane Katrina victims without needing to make a cash contribution. The benefit is available regardless of whether an employee normally takes the standard deduction or itemizes. For employees who have extra vacation, sick or personal leave balances or who just simply want to provide more to the Hurricane Katrina relief effort, a leave program makes it easier for them to help the Hurricane Katrina victims go about the difficult task of rebuilding their lives.

Benefits to Employers:
The employer may take either a charitable or business deduction for the amount sent to the charity. The amounts contributed are not subject to employment taxes. Employers must follow the guidelines below and in the FAQs but no IRS approval is required. A leave donation program can be adopted and administered easily.

Program Guidelines:
The cash contribution by the employer must be:

  • Made to a qualified tax-exempt organization;
  • Dedicated to Hurricane Katrina relief;
  • Paid to the organization by Dec. 31, 2006

For more information about the Leave Donation Program, see:

IRS News | Permalink

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