Thursday, January 06, 2005
Loans and Charity
Interesting.
Q: We've loaned a lot of money to a family which fell on hard times. We hoped the credit would help them get on their feet financially, but now it seems unlikely that they will be able to repay. Can we consider the loan amount a charitable contribution?
A: Many readers probably need some background to this question. It's important to know if the loan "write-off" can be considered a contribution because Jewish tradition encourages us to tithe, that is, to give at least a tenth of our income to charity each year. So there is religious importance to knowing that the contribution can be considered a current donation.
Continues.
Q: We've loaned a lot of money to a family which fell on hard times. We hoped the credit would help them get on their feet financially, but now it seems unlikely that they will be able to repay. Can we consider the loan amount a charitable contribution?
A: Many readers probably need some background to this question. It's important to know if the loan "write-off" can be considered a contribution because Jewish tradition encourages us to tithe, that is, to give at least a tenth of our income to charity each year. So there is religious importance to knowing that the contribution can be considered a current donation.
Continues.
