Contributions to the Cayman Islands National Recovery Fund are now tax deductible for American citizens.
Appleby Spurling Hunter attorney. Carlos de Serpa Pimentel spearheaded the work of achieving the tax-exempt status for the fund.
Section 501 (c) (3) of the US Internal Revenue Code provides for tax exemption for charitable organisations, engaged in activities such as relief of the poor, the distressed or underprivileged; erection or maintenance of public buildings, monuments or works; combating community deterioration; advancement of education or science and lessening the burdens of government, according to a press release from the Recovery Fund.
The effect of the exemption is that US donors to the Cayman Islands National Recovery Fund Foundation are entitled to claim a tax deduction from the IRS in respect of their contributions.
The National Recovery Fund was established on 23 September, 2004, following Hurricane Ivan. It is an independent trust whose goal is to relieve persons who were injured, bereaved, rendered homeless, destitute or otherwise affected by the hurricane.
Since then the fund has worked to provide housing assistance to needy families whose dwellings were damaged or destroyed by Ivan. The fund relies on donations to carry out its work.
Chairman of the Board of Trustees, Governor Bruce Dinwiddy, welcomed the news of the status, noting that it will open the way for tax-exempt donations from US taxpayers, whether personal or corporate.
He also thanked Appleby Spurling Hunter for its help.
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