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Friday, October 31, 1997


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New Tax Break for PC Donations to Schools

By Will Workman
Computer Shopper

Educators Concerned About Old Equipment, Lack of Training

In a legislative move designed to spur donations of computer systems to neighborhood schools, a provision in the recent Taxpayer Relief Act of 1997 broadens the charitable-deduction incentive for companies. The new law will also serve as an incentive for businesses to upgrade their systems quickly.

Beginning January 1, 1998, companies that donate PCs to public or private schools for grades K through 12 can deduct the full cost of the systems, as long as the computers are no more than 2 years old.

"It's very difficult for schools to get the technology they need and then keep upgrading," says Lori Gulakowski, spokesperson for Rep. Randy Cunningham (R-Calif.), who had originally introduced the donation-deduction bill, calling it the 21st Century Classrooms Act.

According to the market-research firm Dataquest, fewer than 5 percent of all PCs wind up being donated to schools, charities, or nonprofit organizations. Gulakowski says that's because the only comparable tax break prior to the new law applied to corporate donations to universities' scientific research arms. Schools, she says, had to set up partnerships or apply for grants to get hand-me-down systems.

Schools are eager to get up-to-date computers, but educators warn that they don't want anyone's junk.

"[The law] will probably spur donations of computer and other technologies, but I think we need to proceed cautiously, especially on the issue of obsolescence," says Charles DeVoe, associate director of technology policy with the New York State Education Department.

"There's a concern that the educational community would get something less than what it needs," DeVoe notes. "We hope that business and industry recognize that schools need access to technology that's on a par with their own."

Gulakowski says a clause in the new provision prevents dumping of outdated equipment by requiring companies to demonstrate that their donations fit into the receiving school's curriculum needs.

DeVoe says New York and other states have met with "several major" corporations eager to donate preowned PCs, but have made slow progress. Although the New York legislature has a bill pending similar to the federal provision, he says, schools need to know they'll be getting not just hardware, but badly needed training support to take full advantage of the donations.

"Developing the human dimension is just as important. People need training so they can use that technology," he says.

Gulakowski says lawmakers are also working on expanding the pro-vision to cover donations to libraries.

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