Stretch your charitable giving dollars
Although the 2017 federal tax cuts reduced the likelihood that donors could take tax deductions for giving to charities, there are ways to give money to help other people without straining your budget. WV Neighborhood Investment tax credits and IRA Required Minimum Distribution are two helpful programs that can make giving easier.
WV Legislature set aside $3 million to increase giving to local nonprofit organizations in 1996. Theses 501(c) 3 designated charities apply for tax credit vouchers for donors who support them.
By donating to approved NIP organizations individuals and businesses can earn credits that reduce their WV tax. Kump Education Center (KEC) has been an NIP charity for nine years.
This year Kump Education Center can offer $6,000 in WV tax credits for contributions of $500 or more. Tax credits equal 50% of the contribution (a donation of $1,000 generates $500 in WV tax credits for the donor). KEC sponsors teachers seeking National Board Certification and they meet in restored rooms at Kump House.
This initiative fulfills part of our mission “to enhance teacher excellence.” KEC continues to promote student achievement with the STREAM mentoring program as a central focus of our NIP project again this year. AmeriCorps mentors provide academic coaching for middle school students who are at risk of dropping out of public school. This program was recognized at Education Alliance Student Expo 2018 in Charleston.
IRA Required Minimum Distribution is a national program that can be used to help seniors give more generously to their favorite charities and reduce their taxes.
Taxpayers who will be over the age of 70.5 years by April 1 of the following year and all years after that, are required to withdraw money from their IRA accounts and add it to their income unless part or all of the drawdown is given directly to a 501(c) 3 charity. A withdrawal check from the IRA must be written directly to the charity in order not to be counted as part of the septuagenarian’s annual income. Most 501(c) 3 charities can qualify for this contribution.
Careful planning about how to use limited dollars can make those dollars go further for the good of our community.
At Kump Education Center we are proud of the fact that we have been selected for WV Neighborhood Investment tax credits for a 10th year, and we are able to work with donors to use their gifts to help young people get a better start in life.
The magic of such charitable giving is that it allows us to change circumstances for disadvantaged members of our society without destroying the economic structure that we depend upon ourselves.