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Colorado Child Care Contribution Credit (5c)

The Colorado Child Care Contribution Credit (5C) was established to encourage greater private support of Colorado child care programs, like those provided by Rodef Shalom. Because certain monetary contributions to Congregation Rodef Shalom qualify for this tax credit, you may be able to decrease the after-tax cost of your gifts by more than 50%.*

A  gift of $500 or more to Rodef Shalom that is unrestricted or for Early Childhood Programs earns you a tax credit of 50% of your gift, for up to a $100,000 donation! This includes gifts beyond your membership contribution unless you are a L'chaim member at $5,000 or more.

As a special opportunity, gifts given as a part of our 5783 Yom Kippur Appeal of $360 or more (up to $100,000) are also eligible for the 5C tax credit.  

$500 donation = $250 tax credit
$1800 donation = $900 tax credit
$15,000 donation = $7,500 tax credit
$100,000 donation = $50,000 tax credit

The effect of the credit is that half of your donation – as long as it is designated for the credit – is offset by a reduction of your Colorado income taxes. You will still be able to claim your full contribution as a charitable deduction on your Federal and State income tax returns if you itemize deductions, meaning your donation earns even greater returns!

STATE GUIDELINES:

  • The maximum credit you may take in any one year is $100,000 or your actual Colorado income tax liability for the year, whichever is less. However, any unused credit may be carried forward for up to five additional tax years.
  • Only monetary donations are eligible. In-kind gifts, such as stock or other securities, donor advised funds, labor, or equipment do not qualify, however distributions (including RMDs) from an IRA are eligible.
  • Contributions for which an Enterprise Zone Credit is taken are not eligible for this credit.
  • Click here for more information about the Childcare Contribution Credit.
     

HOW IT WORKS AT RODEF SHALOM:

  • L’chaim members whose membership contribution levels are $5,000 or higher are eligible for the 5C credit to be applied toward their membership dues. This is new for 2022.2023!
  • For members whose membership contributions (dues) are less than $5,000, the 5C credit does not apply to dues. 
  • If you are a member of another synagogue, not eligible for membership, or have another valid reason for not joining (Rodef has discretion to decide if reasons are valid), we welcome your gifts and will be happy to supply a tax statement for the 5C deduction for eligible donations. 
  • We will process 5C statements for any unrestricted gift or donations specifically designated for Early Childhood Programs of $500 or more.  Please note that this includes cumulative gifts given over a calendar year.  
  • IMPORTANT: Please write “Colorado Child Care Contribution Credit” or “5C” in the memo line of your check or donation card. If giving online, please note that your gift is for the Colorado Child Care Contribution Credit (5C) option.
  • As required by law, Congregation Rodef Shalom will provide each donor with a signed statement confirming the amount of the monetary contribution eligible for the credit and the eligible purpose for which the contribution will be used.

*We always recommend that you consult with your tax adviser to determine how the credit will specifically benefit you.

Wed, December 7 2022 13 Kislev 5783