Description

Below is the text of a letter asking Colorado's state legislators to support HB 16-1089 The Colorado Endowment Funds Tax Credit.  Please sign on by 5 pm on March 25, so that either your nonprofit organization's name and city, or your name and home city, may be listed on the letter that we provide to the Colorado General Assembly. 

Requested contact information will be used to organize responses by area of the state and for any needed follow up. Your contact information will not be posted online or shared with third parties. If you have any questions about the survey or public policy, contact Mark at mturner@coloradononprofits.org or (303) 813-4203 or visit our tax credit page.

March 25, 2016
Colorado General Assembly
200 E. Colfax Avenue Denver 80203

Dear Members of the Colorado General Assembly

We, the undersigned Colorado nonprofit organizations, urge you to support HB 16-1089 to create a Colorado Endowment Funds Tax Credit. By preserving principal and spending income, endowments allow nonprofits and foundations to support our state’s communities over the long-term through direct services and grant making. Endowment funds also help nonprofits and foundations invest their assets prudently to grow in value over time. 

HB 16-1089, sponsored by Representative Dominick Moreno (D-Commerce City) and Senator Chris Holbert (R-Parker), creates a 25% tax credit for individual donations of cash, property, or securities to eligible endowment funds held by a nonprofit, a community foundation, or a community foundation on behalf of a nonprofit. The maximum credit amount is $25,000. To use the credit, donors must have tax liability and cannot claim another state tax credit for the same donation.

This credit would help nonprofits and foundations serve the community by:

Increasing giving to these funds.  Each $1 awarded in tax credits leverages $4 in donations.

Raising awareness of the option to give to endowments. Donors ‘ gifts are invested to grow in value over time rather than being a fixed amount that is spent  immediately on programs

Helping nonprofits benefit from generational wealth transfer. These credits encourage donors to make long-term gifts as they determine how to transfer their wealth to future generations.

Growing their savings. Nonprofits and foundations can set assets aside for investment and future use.

With your support, Colorado would join five other states (IA, KY, MD, MT, and ND) in enjoying the benefits of an endowment tax credit. In Iowa, for example, $6 million in credits leveraged $24 million in giving to community foundations in 2014.  Similarly, Montana nonprofits received $123 million in gifts between 1997 and 2010; they spent an estimated $600,000 each year for the benefit of charitable causes. Although credits in the other states have been adopted more recently, nonprofits have already used them effectively to increase charitable giving to endowments.

Colorado relies on the strength of our nonprofits and foundations.  Please vote yes for HB 16-1089 - the Colorado Endowment Funds Tax Credit.

Sincerely,
[the undersigned organizations]

 

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