Tax-Savvy Giving: How to Take Advantage of Tax Credits Through Charitable Giving

September 23, 2024

Charitable giving doesn’t just change the lives of the children at Palmer Home for Children—it can also provide substantial tax benefits for individuals and businesses. If you’ve ever considered maximizing your donations to benefit both a worthy cause and your financial outlook, now is the time to explore tax-savvy strategies like the Children’s Promise Act and other tax-deductible programs in Mississippi.

The Children’s Promise Act of Mississippi

The Children’s Promise Act offers Mississippi taxpayers a unique opportunity to directly support eligible charities like Palmer Home for Children while receiving a substantial state tax credit. Palmer Home for Children is proud to be part of this program, allowing our supporters to contribute to our mission while also enjoying a major tax benefit.

Through the program, both individuals and businesses can receive a dollar-for-dollar tax credit for up to 50% of their state tax liability by donating to qualifying organizations like Palmer Home. Here’s how it works:

For individuals, the maximum donation is $1,000 for singles and $2,000 for couples filing jointly.
Businesses can donate up to $50,000 in tax-deductible donations per year, making it a significant way to give back while lowering their tax burden.

In addition to the Children’s Promise Act, there are other ways to give that can lead to tax deductions at the federal and state levels:

Tax-Deductible Donations: Donations to qualified organizations like Palmer Home may be deductible on your federal tax return, lowering your taxable income for the year. Check with your accountant or tax advisor for specifics on how to include charitable contributions in your filing.
Mississippi Business Incentives: Mississippi businesses may also take advantage of other state incentives, like tax breaks for supporting charities, workforce development, or educational initiatives. Contributions that align with the state’s efforts to bolster children’s welfare and education may qualify for additional benefits.

Important Deadlines and Applications

To ensure you benefit from these tax incentives, it’s crucial to be aware of the deadlines and application processes.

Children’s Promise Act: credits are offered on a first-come, first-served basis. Applications open each year on January 1st, and the available credits can run out quickly. As a service to our donors, our team can help with the application for your business. If you are interested in having our team support you with your application, please email development@palmerhome.org.
Federal Tax Deadlines: Your charitable donations for the year must be completed by December 31 to count toward that year’s taxes.

Be sure to consult your tax professional for guidance on these programs and confirm any updates or changes in tax laws.

Giving doesn’t just benefit those in need—it can also benefit you. Consider making a tax-deductible donation to Palmer Home today, and let your giving work smarter. For more information, please contact our team at development@palmerhome.org.