There is a brand new tax incentive available for charitable contributions. It’s been affectionately termed the “Triple Play” and is available for gifts of $500 or more made to community foundations in Maryland during 2015.
The Maryland legislature recently passed Endow Maryland, a program setup as incentive for individuals and businesses alike to donate to local community foundations. The triple advantage for contributors is a tax credit for Maryland, as well as tax deductions on your state and federal tax returns. For example, if you’re at a 25% federal tax rate and 7% state tax rate, a $1000 donation only ends up costing you $430 due to the tax credit and deductions.
Your donations of between $500 and $5k to permanent funds could support housing, job training, job placement, scholarship programs, health care, education, and social services. Time is of the essence though, as all the qualified foundations are sharing $250,000 in credits to give out, and the credits are available on a first come, first served basis.
As a past Chairwoman of the Community Foundation of Frederick County, I highly support this initiative and encourage you to participate. Simply contact your local community foundation to find out if they are a qualified foundation under this new credit and how to apply for it.
McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by advising them regarding their financial, technology and human capital management needs.