Tax Credits
"Everyone has to make their own choices about how much of their income they are willing to donate to any particular cause. I donate to Epworth because it efficiently and effectively puts donor dollars to very good use. By taking advantage of tax credits, I can afford to put more money in Epworth’s hands to do the good work that it does for kids.
I like to think of YOP tax credits as a matching gift to Epworth from the State of Missouri for every dollar I donate to Epworth. I know I have to front the matching gift from the State, but I get it back when it is time to pay my taxes.”
- Kent Knickmeyer, Epworth Board Member
Who is eligible?
Any individual, business or corporation having a Missouri income tax liability.
What gifts are eligible?
Contributions to Epworth of $500 or more in cash or stock until December 31, 2012.**
How do the tax credits work?
As with most charitable donations, the donor may claim a federal income tax deduction. With Missouri Tax Credits, the donor may also take a 50% state tax credit to the limit of his/her taxable income. Donors have up to five years to utilize all of the credits. In addition, with gifts of stock, the donor owes no capital gains tax on any appreciation. As with any gift, how much is deductible for tax purposes will depend upon the donor’s unique financial circumstances.
Here are examples using 2 different cash gifts:
Gift Amount |
= |
$500 |
Gift Amount |
= |
$1000 |
|
Federal tax savings* |
= |
70 |
Federal tax savings* |
= |
140 |
|
Missouri tax savings* |
= |
30 |
Missouri tax savings* |
= |
60 |
|
State tax credit (50%) |
= |
250 |
State tax credit (50%) |
= |
500 |
|
NET Cost to you* |
= |
$150 |
NET Cost to you* |
= |
$300 |
* As with any gift, the amount that is tax-deductible is dependent on each individual’s unique financial circumstances. The above examples are calculated for donors in the 28% tax bracket. Greater savings will be realized for those in a higher tax bracket. Please consult with your tax advisor to determine your exact savings.
How do you make a gift?
It is incredibly easy! Send your contribution to Epworth (110 N. Elm Ave., Webster Groves, MO 63119) with a note indicating that you would like tax credits for your donation. We will send you an acknowledgement letter with brief instructions on how to fill out the accompanying tax credit form. After you have completed and returned the form to Epworth with proper documentation, you will receive a certification letter directly from the State of Missouri indicating approval.
We also accept gifts of appreciated stock and other securities. Please contact the Development Office at (314) 961-5718 for further information. Epworth can fax or email the stock transfer information directly to you or your broker.
Can you give or sell your tax credits to someone else?
YES! Certain types of Tax Credits are transferrable.
Who should you contact for more information?
Contact the Development Office at 314-961-5718
download the YOP tax credit application (1.08 mb pdf)
** Epworth has Youth Opportunities Program (YOP) and Children’s Home Tax Credits (Residential Treatment Agency Tax Credits or RTC) available for cash and stock gifts. Certain restrictions apply; please contact the Development Office at 314-961-5718 to ensure that your gift is eligible. The YOP credits were applied for and received through the Missouri Department of Economic Development and the RTC or “residential tax credits” were made available pursuant to RSMo 135.1150 and the rules of the Missouri Department of Social Services 13 CSR 35-100.010.