Here is how it works

The purpose of the Enterprise Zone contribution tax credit is to encourage taxpayers to assist local enterprise zones that have been established by the state of Colorado. The state works with governmental and non-profit partners in these zones to implement economic development plans "directly related to job creation and job preservation." Among the agencies who can receive this credit are homeless shelters that provide employment-related services.

There may be a substantial tax benefit for donations made to the Denver Rescue Mission through the Enterprise Zone. The net after-tax benefit for a gift of $1,000 is $626. In this way a gift of $1,000 costs only $374 after taxes (see example on right). Specific net after-tax benefit for the same gift will differ based on individual tax situations.

For 2008, the state has established a cap (limit) on the amount of qualifying EZ contributions to the Mission at $2,700,000.  Once the contribution cap is reached, the tax credit will no longer be available. We are unable to predict the date on which the EZ cap will be reached in 2008. However, based on historical giving patterns it is likely that some contributions received during the last quarter of the year will be ineligible for EZ credit.

The Process:

• Donors make a contribution by check (or online), $500 minimum amount to $400,000 maximum amount.
  (effective May 15th 2008, minimum donation must be $1,000)
• Donors must indicate Enterprise Zone on the memo line of the check OR select Enterprise Zone on the donation page before submitting.
• As a state requirement, please include your social security number with your donation.
• Donors send check to the Denver Rescue Mission at P.O. Box 17963, Denver, CO 80217.
• Within 60 days, the Denver Rescue Mission sends the donor the appropriate paperwork for tax purposes.

Program Benefits:

• Decreases donor's state tax liability through a 25% state tax credit for cash gifts and 12.5% for in-kind contributions such as stocks, vehicles, furniture, etc. (there must be a state tax liability).
• Decreases the net cost of the contribution through potential federal pre-tax deductions and state tax credits.
• Provides the opportunity to help more people in need by increasing the level of the gift. Donors are able to increase the level of their gift without increasing the cost of the gift.