Planned Parenthood denied tax-deductible status

Planned Parenthood of Indiana faces yet another challenge from the state of Indiana.

The organization was denied the ability to participate in Indiana’s 2011 Neighborhood Assistance Program. The program allows donations to charitable organizations to be partially deducted from donors’ taxes. The agency said the program “provides citizens and businesses in Indiana with an incentive to contribute to not-for-profit corporations.”

Planned Parenthood called the denial of access to the program unexpected. Planned Parenthood had been participating in the program “with great success” for two years, the organization said in a press release.

In a letter from the Indiana Housing and Community Development Authority to Becky Cockrum, President and CEO of Planned Parenthood of Indiana, the state agency said the denial was based on HEA 1210, a law which stops Indiana from funneling federal money to the family planning agency. Planned Parenthood is challenging the law in federal court.

NAP allows organizations to allocate up to $2.5 million annually to donors as tax credits. The program is designed to encourage citizens to donate to organizations. Planned Parenthood said it has raised more than $21,000 using the program in the past two years.

The denial of access to the program comes at a time when Planned Parenthood is soliciting extra donations to make up for the elimination of federal money to the organization. “And they’re doing it at a time when we need our donors’ assistance badly,” Cockrum said in a statement. “Our supporters are the only reason we are able to cover the costs of treating our established Medicaid patients through June 20 while seeking a preliminary injunction against HEA 1210.”

The U.S. District Court in Indianapolis is considering arguments given by Planned Parenthood and Indiana officials about whether to overturn the law. A final decision is expected before July 1.

— Zach Ammerman