Sometimes when there’s an incentive to do good things: more people step up to do them. And other times people do good things because good needs to be done.
There’s a really great story out of Colorado in which residents of the state are now able to use a portion of their state income tax refund to donate to any non-profit organization that is registered in the state of Colorado. All interested individuals or couples filing jointly would have to support the non-profit of their choosing is to use a simple designation on their Colorado State Tax Return.
This program is being called ReFUND CO, and it’s a real opportunity for Colorado taxpayers to help strengthen their communities and help some of the most vulnerable people in their society:
“This new state program, called ReFUND CO, will give you an opportunity to directly support a local nonprofit that is doing important work in your community. If you get a refund, it puts you in control of deciding if you want to donate some or all of it and choosing exactly which Colorado-registered charity will directly benefit.As per the press release from the Colorado Nonprofit organization
For eligible organizations, this provides a new way to fund important work in the community. Previous to this year, Coloradans could only donate to eighteen designated causes chosen by the state government, but now that system has changed which could help struggling nonprofits all over the State.
Examples of nonprofits: Schools, shelters for abused women, hospices, organizations that are dedicated to a variety of causes and endeavors, though all nonprofits eligible under this program must be 501(c)(3) nonprofits.
Here are some of the requirements for the nonprofits who wish to participate in this program:
- All organizations interested in being involved in the Donate to a Colorado Nonprofit Program must be 501(c)(3) nonprofits, registered under the Colorado Charitable Solicitation Act for at least five years, and must also currently be in good standing.
If you are interested in participating in this program as a Colorado taxpayer and are due a tax-refund the actual process is quite easy:
- Decide how much of your state income tax refund to donate (all or a portion of it).
- Enter the name of the organization and it’s registration number in the Donate to a Colorado Nonprofit Fund line on your state tax return form or tax software – or give this info to your tax preparer when you share your tax documents.
In 2019, Colorado returned more than $1 billion in refunds to 1.9 million state taxpayers, in 2020 similar projected numbers will help Colorado residents to help not just themselves, but each other, and benefit the communities and organizations set up to help anyone who needs it. This just gives us a glimpse into what programs like this can do for the community and organizations in need of funding.