St. Vincent Home for Children is pleased to announce the receipt of $244,754 in tax credits through the Missouri Department of Economic Development’s Youth Opportunity Program. Under this program, credits will be available for $489,508 in donations over the next two years. Credits are available for individuals, businesses, and corporations who have a Missouri income tax liability. Our new YOP project focuses on reducing aggression and increasing school performance as well as decreasing youth involved in crime for clients served by St. Vincent Home for Children. With these contributions, we will continue to help our children with severe emotional, social and behavioral disorders heal and achieve a more positive future.
These YOP tax credits are being offered to donors who contribute $250 or more through gifts of cash, stock or by credit card. In many instances, a gift of appreciated stock can achieve higher tax savings and create the opportunity for donors to provide even more support for the important services we provide our children. Please consult with your financial advisor regarding your specific situation.
Through the Youth Opportunities Program, individuals, businesses and corporations with taxable income in Missouri can, in addition to all other federal and state charitable deductions, receive a lump sum tax credit of 50% of their donation directly off their Missouri income tax bill. These tax credits can be carried forward for five years. Depending on the donor’s tax bracket, this can mean in some cases recapturing 65-75% of the donated amount through tax reductions.
YOP TAX CREDIT EXAMPLE
| Individual Cash gift of $10,000 (from taxpayer in the 35% tax bracket) | ||
| Cash Gift | = | ($ 10,000) |
| Federal Deduction | = | $ 3,500 |
| Missouri Tax Deduction | = | $ 600 |
| YOP Tax Credit (50% of gift) | = | $ 5,000 |
| *Additional federal taxes due to reduction of deductible state taxes (Represents 35% of the $5,000 YOP credit) | = | ($ 1,750) |
| Total estimated tax savings | = | $ 7,350 |
| Out of Pocket cost for $10,000 gift | = | $ 2,650 |
*Represents 35% of the $5,000 YOP tax credit. Your deduction for state taxes on your federal return is reduced by $5,000 because your state tax liability is being reduced by $5,000. As with any charitable giving, please consult your accountant or tax advisor to determine your eligible tax savings.
How the YOP Tax Credit Application Works
- Upon receipt of a contribution to St. Vincent Home for Children of $250 or more with a request for YOP tax credits, we will forward the donor a two page Missouri DED Application for claiming the tax credits. The application must be signed by the donor in the presence of a Notary Public and a copy of the front and back of the check must be attached. Additional information can be provided if the gift is by credit card or stock.
- Upon receipt of the completed application, St. Vincent Home for Children will forward the application to the Missouri Department of Economic Development. DED will issue a certification within two – four weeks.
- The donor may use the deduction when filing their tax return by attaching the documentation received from St. Vincent Home for Children and the Department of Economic Development.
We appreciate the incredible support that the community provides to St. Vincent Home for Children and we are grateful to the Missouri Department of Economic Development for this opportunity to give back to our generous donors as we fulfill our mission and help our children realize a more promising future.
If you have any questions or need additional information, please contact Cristina Garcia at 314.261.6011 x124 or cgarcia@saintvincenthome.org or John Merker at 314.261.6011 x147 or jmerker@saintvincenthome.org.
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