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Colorado Homeless Contribution Income Tax Credit

Help Break the Cycle of Generational Poverty
And Receive Up To A 25% State Tax Credit

The Colorado Homeless Contribution Income Tax Credit benefits taxpayers who want to support individuals experiencing homelessness by providing a state tax credit for the donor.

The State of Colorado allows you to take up to a 25% tax credit on your state income taxes when you donate to We Fortify projects through the Colorado Homeless Contribution Income Tax Credit. Remember, this is a tax credit, not just a tax deduction.

Support Young Adults Experiencing Homelessness and Receive A State Tax Credit

The Colorado Homeless Contribution Income Tax Credit encourages donors to support local nonprofits that are providing valuable services to those experiencing homelessness.

You can take up to a 25% tax credit on your state income taxes when you donate to any one of these through the Colorado Homeless Contribution Income Tax Credit. Minimum donation is $100.

 

Our Villages
  • Working Fusion
  • Wendy’s Village – Harrison School District 2 Teacher Village
  • A second young adult programmed village coming soon!

Real Cost of Giving – The table below illustrates how a large part of your donation comes back to you in various tax credits and deductions, to significantly reduce the after-tax cost of your donation.

Donation Amount

$500

$1,000

$10,000

$50,000

Colorado Homeless
Contribution
Income Tax Credit

($125)

($250)

($2,500)

($12,500)

Charitable Contribution Tax Savings

Federal

($115)

($229)

($2,291)

($11,454)

State

($17)

($34)

($341)

($1,706)

Total Estimated Tax Savings

$257

$513

$5,132

$25,660

Net Cost of Giving

$243

$487

$4,868

$24,340

Assumptions:

— Colorado Homeless Contribution Income Tax Credit: 25%
— Federal tax bracket: 32%
— State tax bracket: 4.55%
— Federal tax deduction benefit has been adjusted to reflect the add-back of lower state taxes.

Note: The example above is a sample calculation. Please consult with your tax advisor for your specific benefits.

Qualifying Donations and Regulations

  • You can take advantage of the tax credits regardless of whether you itemize or not.
  • For those who itemize, the amount of a donation that is not tax credit qualifies for federal income tax deduction.
  • Both individuals and corporate donors can benefit from this tax credit program.
  • Taxpayers over the age of 70½ who are required to make minimum distributions from their Individual Retirement Accounts (IRAs) can make a qualifying contribution directly from their IRAs. Please note that other retirement plans — such as 401(k) plans or Donor Advised Accounts — cannot qualify. Owners of these plans will need to transfer funds from the 401(k) plans to an IRA before making the charitable distributions.
  • Stock and substantiated in-kind contributions of at least $5,000.01 or more also qualify for a tax credit. Please note the guidance on these has changed and can be found here.
  • You are required to file your tax return electronically.

Please consult with your professional accountant or tax specialist regarding your unique tax situation.

IMPORTANT NOTE: Each donor must provide We Fortify with their Social Security number (SSN) or federal Employer Identification Number (EIN) for businesses. Without this information, we are unable to send your donation to the state tax credit administrator for certification and thus unable to process your tax credit. Please call (719) 232-1252 to provide this information. Please do not email or mail it.

As a participating agency, the state requires We Fortify to submit all donations to this tax credit to an administrator for approval. Certificates will be submitted to the state on a quarterly basis. Once the Administrator has approved your donation for the tax credit, they will email your tax credit certificate to you.

Helpful Resources

Colorado Homeless Contribution Income Tax Credit Program Overview

Donate By Mail

Please mail all donations to:

We Fortify
c/o Stockmens Bank
25 North Cascade Avenue,
Suite 100
Colorado Springs, CO 80903

Make checks payable to: “We Fortify.” In the memo of the check, write “Colorado Homeless Contribution Income Tax Credit” and designate whether your donation is for We Fortify or a specific community:

  • Working Fusion
  • Wendy’s Village
  • Our second young adult programmed village (in progress)
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