Update: Homeless Tax Credits on ColoradoGives.org
Funds donated through an intermediary organization, such as ColoradoGives.org, are not eligible for the Homeless Tax Credit. Funds donated through ColoradoGives.org related to Child Care or Enterprise Zone Tax Credit remain eligible, read more below.
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Eligible: Child Care or Enterprise Zone State Tax Credits
When a donor makes a donation to an organization that is set up for Child Care or Enterprise Zone State tax credits, Colorado Gives 365 handles issuing the tax receipt to donors to substantiate the donor’s federal charitable tax deduction.
You as the nonprofit are responsible for determining the extent to which a donation designated for you through the website is eligible for the applicable enterprise zone or child care tax credit. You are responsible for issuing the required tax credit document(s) to any donor who has designated a gift to you.
Reminder: Do not send Colorado state tax credit documentation for gifts given via eCard. Your Donation report has a Payment Method field you can reference to see how the donation was made.
Q: How do I indicate that donations to my organization may be eligible for Colorado Child Care and/or Enterprise Zone tax credits?
When you are logged in to your account, go to your Organization Page. At the bottom you will see your Organization Data. Here you click on Tax Credits to add or modify information related to additional state tax credits that you offer.
For Colorado Child Care tax credits, you have the opportunity to inform the donor if there is a minimum gift amount and any other qualifying factors or instructions. To have this information show to the donor, click the toggle to "enable tax credit".
This means the information you entered will display and donors can see specific language that will appear on the tax receipt letting them know their donation (not including fees) may qualify for a Colorado state tax credit. Each organization determines the extent to which donations are eligible, and each organization is responsible for issuing the appropriate state tax documents. Donors are directed to contact each organization directly with any Colorado tax credit questions.
For Enterprise Zone eligible organizations you have the ability to specify if there are one time or cumulative minimum gift amounts, and any other qualifying factors or instructions. To have this information show to the donor click the toggle to "enable tax credit".
This means the information you entered will display to the donor and specific language will appear on the tax receipt letting the donor know that their donation (not including fees) may qualify for a Colorado state tax credit. Each organization determines the extent to which donations are eligible, and each organization is responsible for issuing the appropriate state tax documents. Donors are directed to contact each organization directly with any Colorado tax credit questions.
Q: How do I turn off the display of additional State Tax Credits?
To turn off the display of additional tax credits, just toggle off the "enable tax credit" and click save. All your information is retained but hidden from donors. If you offer tax credits and run out of credits, it is your responsibility to turn off this feature.
Q: What is communicated to the donor about Colorado State Tax Credits?
1. The information you enter in your Organization Data section of the profile displays to the donor when "enable tax credit" is turned on.
2. Only the donation amount may be considered for state tax credits. Platform and processing fees are not eligible. The donor sees this message in multiple places - on your organization page and the donation receipt (see example below).
Q: As a nonprofit, how do I know when I've receive a donation?
1. Organizational Administrators receive an email when a donation is made. You will see a call out in the email that ACTION IS NEEDED.
- Please review each donation you receive to see if it is eligible for a state tax credit
- Please note the dollar amount that may be eligible excluded fees.
- Please contact the donor to find out if they are interested in the tax credit and provide them with the necessary state tax credit forms/documents.
2. In your downloadable Donation Report there are two (2) columns - EZ Tax Credit and Child Care Credit. If you have state tax credits enabled on the site, you see a Yes in the appropriate column for each donation record.
Q: As a nonprofit, are there ways for donors to tell us if they explicitly want their donation to be considered for a state tax credit?
Yes, there are couple of solutions you may want to try.
1. You can set up a Designation that appears in the checkout flow. For example: "Enterprise Zone Tax Credit Program" or "Child Care Tax Credit Program".
2. You can choose to add a pre-built custom question to your donation form. Go to Donation Form and Add a section. You will see an option for Tax Credit: Donor Interest. The following statement will appear to all donors making a donation to your organization; "I would like my donation considered for a Colorado Enterprise Zone or Child Care tax Credit"
