Tax Credits

Our donors have always loved the idea of "matching grants." These occur when a foundation pledges to "match" any gift a donor makes to our agency. Some foundations match 1-for-1. Missouri's Tax Credit Program has the effect of "matching" gifts that donors make to the ministry of the Children's Home. A donor in the 12% tax bracket (who itemized deductions) can make a $1000 tax credit gift to the Children's Home and receive 55.2% or $552 of that gift in tax benefits from the state and federal governments. That means for a $1000 gift, the donor is only giving 44.8% or $448 without tax benefit. That's closer to a 2-for-1 match.

Below are some more examples...

1) A donor in the 24% tax bracket (who itemized deductions) can make a gift to the Children's Home and receive 58.8% of the gift in tax benefits. 

2) A donor in the 37% tax bracket (who itemized deductions) can make a gift to the Children's Home and receive 62.7% of the gift in tax benefits.

*These examples are for educational purposes only, and not intended as professional tax or legal advice. Check with your tax advisor to see how a tax credit gift affects your unique tax situation for both the year of gift and subsequent future tax years.

While the above examples are for 50% state tax credits some state tax credits the Children's Home has access to are 70% and can potentially have an even greater tax benefit for the donor!

At first glance, this seems "too good to be true", and while most things in life that seem too good to be true aren't true the amazing potential of tax credit giving is true!

It might help you to know why the state of Missouri offers these 50-70% tax credits. They do this to encourage Missouri tax payers to support the ministry and services we provide. They offer this incentive because they know that if we don't provide this service, they will have to provide it themselves. If they have to provide ALL of it, then they will have to pay for ALL of it instead of the 50-70% they help us pay for with tax credits. It is cheaper for the state to encourage donors to "pay for" the cost with charitable gifts, than to have the state responsible to pay for ALL of it with taxpayer's money.

If you like to maximize your stewardship opportunities so that you are applying the Biblical principle of "multiplying your talents" (Matthew 25:14-30) then you are really going to love the opportunities presented by the Missouri Tax Credits available through Missouri Baptist Children's Home.

For more information or application forms, call the development office at 1-800-264-6224.