Becoming a monthly Good Samaritan Sponsor is the most effective way to support neighbors in need by consistently sustaining the operations of Springs Rescue Mission. But there are plenty of other ways to help men and women experiencing homelessness, poverty and addiction in Colorado Springs.If traditional contributions don’t suit your particular financial or tax situation, consider one of these creative ways to spark hope in the hearts of the guests we serve this holiday season.
The holiday season is the busiest time of year for charitable giving. In fact, Springs Rescue Mission receives the majority of its annual gifts between Thanksgiving and New Year’s.While the primary driver of charitable giving is always a compassionate heart and a desire to serve others, we are fortunate to live in a country that offers tax breaks to encourage giving to nonprofit organizations.But did you know that there are more ways than one to accomplish the goal of supporting local nonprofits like SRM?Structuring gifts to take full advantage of tax breaks not only reduces the “net cost” to you as a donor, but it also empowers you to consider multiplying your gift and impact.We get a lot of questions about other ways to donate, so here’s a quick rundown of the top five alternative ways to give:
1. Stock Gifts
If you own stock in publicly traded organizations or commodities, you likely know that any appreciation is subject to the capital gains tax. But if you donate those holdings to Springs Rescue Mission, you’ll receive a charitable income tax deduction equal to its fair market value and avoid those taxes altogether! That means you receive the benefit without having to sell it, and the Mission can sell it without paying those pesky capital gains taxes. It’s a creative way to donate that could very well maximize your charitable giving — and help your bottom line.
2. Qualified Charitable Distributions (IRA gifts)
Chances are that you own and contribute to an IRA retirement account. If so, consider a Qualified Charitable Distribution! This way, individuals over 70 (and a half) can give as much as $100,000 annually to Springs Rescue Mission directly from their IRA and count it toward their Required Minimum Distribution
3. Estate Gifts
Giving to Springs Rescue Mission through a will or living trust ensures you’ll help neighbors in need for years to come. Estate gifts are also beneficial for tax purposes, as there is no limit to the amount of federal estate charitable deductions that may result.
4. Homeless Contribution Tax Credit Contributions
The Homeless Contribution Tax Credit is a statewide program that is designed to promote business development and nonprofit engagement within economically distressed areas throughout the state. When you make a certified contribution to Springs Rescue Mission through HCTC, you can claim up to 25 percent of that donation as a state income tax credit.
5. Bonus Round: the CARES Act (Universal Charitable Deductions)
The Coronavirus Aid, Relief, and Economic Security (CARES) Act (2020) and the Coronavirus Response and Consolidated Appropriations Act (2021) provided fast and direct economic assistance for American workers, families, small businesses, and industries. As a result of the federal stimulus package, you’ll receive a $300 tax break on top of your standard deduction when you give $300 to nonprofits like Springs Rescue Mission.
