More contributions qualify for 2007 tax credits

Date: October 29, 2007

Author: Kauffman Center

Receiving Missouri tax credits in return for your contribution to the Kauffman Center just became a little easier—and more affordable.  Now new gifts less than $50,000 (which was the earlier limit) are eligible for tax credits.  But time is running out for this 2007 tax option.

Tax credits are a partnership with state government to support charitable projects.  Only $450,000 of credits remain for the Kauffman Center’s capital campaign. Whether they are used or not, our tax credit options will expire at the end of this fiscal year.

For its capital campaign the Kauffman Center applied for and received $25 million in tax credits from the Missouri Development Finance Board.  All but a portion of this amount has been claimed by generous—and smart—donors over the last two years. 

Until recently, donors had to make a new gift of $50,000 or more to qualify.  However,  the Kauffman Center has recently received approval to lower this threshold, now making this option attractive to a much larger group of donors. 

Here’s how it works:  say a donor makes a contribution of $20,000 to the Kauffman Center.  In return, the donor receives a tax credit of $10,000 to be applied against an existing tax liability.  In essence, the $20,000 contribution only “costs” the donor half of that amount.  The credits may be used to offset income tax, franchise tax or financial institution tax and can be applied over a five-year period.  Tax credits may also be transferred to another taxpayer.

Call Paula Kitt, donor relations consultant, to discuss the tax credit option—and whether your gift qualifies. 816-994-7230 

Note:  This information has been summarized for informational purposes only and is not offered as legal advice.  We recommend that you talk with your financial advisor about tax implications of any gift.