More Bang for your Buck: Tax Credit for Donors
Kingsview Pointe, Homes of Hope's mixed income community in West Greenville
As one of just twenty-five certified Community Development Corporations (CDCs) in South Carolina, Homes of Hope is eligible to offer donors and investors a 33% tax credit. Certified organizations are considered by the SC Department of Commerce to be the highest capacity, financially sound nonprofit CDCs in the state, with the most proven and consistent track records of success.
Any investment in Homes of Hope is eligible to receive a 33% tax credit on the investor's:
• SC income tax liability
• Bank tax, or
• Premium tax for insurance companies
This credit can be carried for up to 10 years if necessary.
Any investor making the below contribution is eligible for this credit:
• Cash donation
• Investment (project specific deferred loan, or non-project specific deferred loan)
As an entrepreneurial nonprofit, Homes of Hope is able to produce 70% of our budgeted income through housing related activities. Community support in the form of grants, foundation awards, and individuals' donations help us fulfill the other 30%. We are proud of this sustainable model of fiscal health. For the generous donors who choose to support our ministry, we offer the added investment benefit of a 33% tax credit.
Tax Credit Example
An individual donor/investor, Mrs. Rich, contributes $100,000 to a certified CDC. Mrs. Rich is a SC taxpayer with an income tax liabilty in South Carolina of $20,000 for the year. She does not have any carryover CED credit from prior years. She pays at the marginal tax rate of 40% Federal and 5% State Income tax.
* Mrs. Rich's contribution of $100,000 is deductible as a charitable contribution for federal tax purposes. Furthermore, her contribution to a certified CDC will also be eligible for an income tax credit of $33,000. the SC CED credit of $33,000 is in addition to her deduction for federal and state tax purpose.
* Mrs. Rich pays a marginal tax of 40% to the federal government and a SC tax of 5%. Her investment of $100,000 gives her a tax benefit of approximately $45,000 for her charitable donation deduction and another $33,000 from SC tax credit for a total tax benefit of $78,000.
*Mrs. Rich can claim up to $20,000 in tax credit against her SC income tax and carryover $13,00 of tax credit to future years.
To learn more about this investment opportunity, please contact:
CEO/President, Don Oglesby
firstname.lastname@example.org | 864.546.4637
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