Qualifying Donations Eligible For 25% State Tax Credit
If you made a donation of $100 or more in the current tax year, you may be eligible for the Homeless Contribution Tax Credit (HCTC), formerly issued through the Enterprise Zone.
Note: Qualifying HCTC contributions from the current tax year must be entered in the state's donation portal by Jan. 31. After this date, manual submission and additional steps will be required.
Most monetary donations of $100 or more qualify for the HCTC tax credit. Some donations that do not qualify include gifts made through a Donor Advised Fund. Donations made through intermediary organizations such as ColoradoGives.org, Mile High United Way, CHC: Creating Healthier Communities, Community Shares of Colorado, YourCause, and Charities Aid Foundation via CyberGrants through Front Door are qualified to received the HCTC tax credit. If a donor has any questions regarding the avenue that donations are submitted to the organization of their choosing, it is recommended that they contact us to discuss donation options. More information about eligible and ineligible donations can be found on pages 13-17 of this document. If you have additional questions on whether or not your donation qualifies, please email our Development Associate, or call them at 303-302-6112.
A Few Other Notes About The HCTC
- A full Social Security Number is required (instead of the last four digits) to submit the tax form. This link provides information from the State on this requirement.
- You must file your taxes electronically in order to receive the tax credit.
- You will submit your own contributions through the State's donor portal.
- It is recommended that donors submit qualifying contributions during the quarter in which their donation is made. SafeHouse Denver will notify donors in their mailed acknowledgement letters if that donation qualifies as well as what will be the deadline to submit.
- SafeHouse Denver will "certify" your donations – meaning we will simply confirm that you did, in fact, make that donation in the amount you listed and on the date you listed.
- Once your contribution is certified by us, the State will send you an email containing your certificate.
Here are a few examples of potential HCTC qualifying donations. Let's say Jane Donor made five donations in the current tax year.
- $75 on February 23
- $103.20 on March 20 ($100 base donation and $3.20 to cover credit card processing fees)
- $200 on April 1
- $300 on July 8
- $250 on December 5 for Colorado Gives Day
The $75 donation and $103.20 donation were both made in the first quarter. However, each donation is considered separately for the tax credit, so the $75 donation is not eligible for HCTC because it's less than $100. For the $103.20 donation, only $100 is eligible for HCTC because processing fees are not eligible.
The $200 donation was made on the first day of the second quarter and is a fully qualifying gift. Jane has until July 31 to submit her second quarter contribution in the donor portal*.
The $300 donation was for two tickets to the Hope Gala. Because Jane received goods (tickets to the event), $240 of the $300 is not tax-deductible, leaving a tax-deductible amount of $60. Therefore, this donation cannot be submitted for HCTC because it is less than $100.
The $250 donation in December was made on ColoradoGives.org for Colorado Gives Day. Because this donation was made via a qualified intermediary website, this donation is eligible for HCTC.
These examples are not exhaustive, and we recognize that this new process can be confusing! For any questions, feel free to reach out to us to discuss your unique donations.
*Please note: SafeHouse Denver recommends that donors submit their contributions as soon as they receive confirmation from our Development Associate on the exact amount and date of their donations.
If you would like to take advantage of HCTC or have questions about it, please email our Development Associate or call them at 303-302-6112. They can verify if your donation qualifies for HCTC; if so, they will send you the instructions to submit your contributions.
Thank you for your support!
