Residents who want to donate to a worthy cause and save on their state income taxes at the same time should consider a donation to The Cortland Foundation.
“Businesses or individuals who make at least a $500 donation to the Cortland Foundation can receive a tax credit at a rate of up to 50 percent,” said Lois Nelson, executive director of the non-profit foundation. “This is a win-win situation for donors, and Cortland Acres residents and the community.”
The West Virginia Development Office granted The Cortland Foundation $2,500 in Neighborhood Investment Program tax credits for the 2013-2014 fiscal year.
“Because of this, we have the opportunity to receive $5,000 in donations which will benefit Cortland Acres residents directly,” Nelson explained. “The money from the tax credits will be used to revitalize Cortland Acres dining room.”
The dining room revitalization project is a three-phase project The chapel adjacent to the dining room is included in the project.
“Phase one includes replacing the wall coverings,” she said. “Phase two involves replacing the ceiling tiles and grid and the lighting and phase three is new window treatments.”
Tax credits are awarded at a rate of up to 50 percent. A $1,000 donation for example will result in tax credits of $500.
It’s different than a traditional tax deduction because rather than decreasing total taxable income, it’s actually a credit applied to the amount of state tax owed.
“Donors can use the tax credits to reduce liability for Corporate Net Income Tax, Business Franchise Tax or Personal Income Tax,” she said.
The tax credit can be used to reduce total tax liability and must be used within a five-year period beginning with the tax year in which the donation is made. A donor cannot use the tax credit to reduce total state tax liability by more than 50 percent annually.
This is the first time The Cortland Foundation has gone through the process and Nelson knows the tax credit program may be new for many people in the area.
“I’ll help guide businesses and individuals through the process and make sure they get their tax voucher and understand how to use it and apply it on their taxes,” she said.
The Neighborhood Investment Program is designed to increase charitable giving to nonprofit 501(c)3 organizations that serve low-income families in high distressed areas. The West Virginia Development Office distributed $3 million tax credits to a total of 201 West Virginia organizations. The office received requests for credits totaling $8.2 million.
“We asked for a smaller amount this year to make sure we achieved our goal of raising $5,000 in donations toward the project,” Nelson said. “Next year we may look at other projects and may ask for more money.”
The foundation’s participation in the Neighborhood Investment Program won’t cover the entire cost of the dining room revitalization.
“In addition to applying for the tax credits, we also applied for a Tucker Community Foundation grant to help complete the project,” Nelson said.
Interested businesses or individuals can send contributions to The Cortland Foundation, Attn: Lois Nelson, 39 Cortland Acres Lane, Thomas, WV 26292. For more information contact Nelson at 304-463-4181