State official outlines tax credit for donors to Kansas non-profit groups

KSRE

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Gale highlights benefits of program during monthly First Friday call

MANHATTAN, Kan. – Doing a good deed in your community has its payoffs.

That was a key message delivered recently by Dustin Gale, the manager of a Kansas Department of Commerce program that offers tax benefits for those who contribute to non-profit organizations.

The Community Service Program tax credit, he said, “is a direct deduction from your state tax obligation. And, a bonus to that on the federal side, is that you can deduct the difference if you itemize your taxes.”

Gale was the featured speaker during K-State Research and Extension’s monthly online series, First Friday e-Calls, which helps to nurture small businesses and inspire entrepreneurship in Kansas.

He said that the CSP has been available to Kansas donors since 1994, and contributes approximately $4.13 million annually to tax credits. Those credits can be as much as 70% of the donor’s contribution in rural areas (populations of 15,000 people or less), or 50% in larger populations.

“The Community Service tax credit provides an opportunity for private non-profit organizations and public health care entities to improve their ability to undertake major capital campaigns,” Gale said.

He added the projects are intended to help:
• Children and family services.
• Non-governmental crime prevention.
• Youth apprenticeship
• Youth technical training.
• Health care.

“Under this program, the state authorizes specially selected non-profit organizations to offer tax credits to donors making contributions to the approved projects,” Gale said.

Non-profit organizations are encouraged to apply for eligibility to the program. Gale said the next application period is March 1 through April 30. Donors who contribute to those programs during an 18 month period beginning July 1 will receive the tax credit.

In 2022, Gale said the program is especially encouraging non-profit childcare centers to apply for the program. The Kansas Department of Commerce has designated $1 million of the more than $4 million in CSP funds to go toward the development of non-profit childcare centers in the state.

More information about the program is available online.
Gale’s full Jan. 7 presentation and other First Friday presentations are available online from K-State Research and Extension.

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FOR PRINT PUBLICATIONS: Links used in this story
Kansas Department of Commerce Community Service Tax Credit program,

Community Service Tax Credits

CSP Application Guidelines, https://www.kansascommerce.gov/wp-content/uploads/2021/02/CSP-Guidlines.pdf

K-State Research and Extension First Friday e-Calls, www.ksre.k-state.edu/community/business/entrepreneurship

K State Research and Extension is a short name for the Kansas State University Agricultural Experiment Station and Cooperative Extension Service, a program designed to generate and distribute useful knowledge for the well being of Kansans. Supported by county, state, federal and private funds, the program has county extension offices, experiment fields, area extension offices and regional research centers statewide. Its headquarters is on the K State campus in Manhattan. For more information, visit www.ksre.ksu.edu. K-State Research and Extension is an equal opportunity provider and employer.

Story by:
Pat Melgares
785-532-1160
[email protected]

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