Qualifying Donations Eligible For 25% State Tax Credit
If you made a donation of $100 or more in 2023, you may be eligible for the Homeless Contribution Tax Credit (HCTC), formerly issued through the Enterprise Zone.
Note: Qualifying HCTC contributions from calendar year 2023 must be entered in the state's donation portal by Wednesday, Jan. 31. After this date, manual submission and additional steps will be required.
UPDATE as of Oct. 27, 2023: You may have heard that donations through intermediary channels like ColoradoGives.org do not qualify for HCTC. However, we are happy to announce that the Department of Local Affairs (the entity that facilitates HCTC) has agreed, on a limited basis, to accept HCTC contributions made through intermediary organizations during the 2023 holidays. This means that for THIS holiday season, your qualifying Colorado Gives Day donations WILL be eligible for the Homeless Contribution Tax Credit. SafeHouse Denver is pleased to be able to offer this tax credit to Colorado Gives Day donations, and we are hopeful that legislation will pass in the coming year to make this a permanent change. For more information on HCTC, please visit their website.
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 or an intermediary organization such as ColoradoGives.org, Mile High United Way, Thrivent Charitable or Fidelity Charitable. More information about eligible and ineligible donations can be found on pages 9-12 of this document. If you have additional questions on whether or not your donation qualifies, please email Kacey Lawniczak, Development Manager, or call her at 303-302-6122.
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.
- Donors will be asked to 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 2023.
- $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, so Jane must submit her contributions by April 30*. 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 an intermediary website, this donation is not 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 Kacey Lawniczak 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 Kacey Lawniczak, Development Manager, or call her at 303-302-6122. Kacey can verify if your donation qualifies for HCTC; if so, she will send you the instructions to submit your contributions.
Thank you for your support!