Increase Your Impact

You can now give up to 25% more, without increasing your personal donation, by leveraging the Colorado Homelessness Contribution Tax Credit.

 

As of August 1, 2024, N2N is a participating nonprofit organization in Colorado’s Homelessness Contribution Tax Credit (HCTC).

The Following FAQs help explain the HCTC program. Please note that we recommend talking with a tax professional about how this program will impact your individual taxes. N2N also welcomes any questions about how it may impact your giving.

 

 

What is the Colorado Homelessness Contribution Tax Credit (HCTC)?

Created by Colorado House Bill 2022 – 1083, the Colorado Homeless Contribution Income Tax Credit provides a tax credit to Colorado taxpayers who contribute to eligible homelessness-related projects within Colorado. Any Colorado taxpayer can support a Homeless Contribution Income Tax Credit project located anywhere in the State of Colorado. Once enrolled, 25% of the donation (monetary or assessed value of in-kind) is eligible as a state income tax credit if contributed to a qualified project located in a non-rural community. For further information, visit: https://doh.colorado.gov/hctc

For further information, please review the HCTC Taxpayer Handbook.

 

What donations to N2N will qualify for HCTC?

Qualifying donations include monetary gifts of $250 – $100,000, as well as in-kind donations assessed at over $5,000 (ex. property), given over the course of one tax year. Based on N2N’s initial HCTC enrollment date, eligible donations to N2N for the 2024 tax year must occur on or after August 1, 2024. IRA donor-advised funds do not qualify. Additionally, the donor must pay taxes in Colorado, and must not have received goods or services for the donations (ex. sponsorship). 

Does my donation through N2N’s Colorado Gives Day website qualify? 

Most certainly! The State of Colorado recently approved some intermediary websites, including www.coloradogives.org, to process donations that qualify for HCTC.

How is this funding used?

Donations to Neighbor to Neighbor that are designated to the HCTC program will be allocated towards eviction prevention for individuals who meet HUD’s definition of near homeless. Most of our Eviction Prevention clients fit this definition, so we will be able to continue making an impact on those most in need through generous donations. For more information about what types of projects qualify for HCTC, please refer to  https://doh.colorado.gov/hctc

 

Why would I choose to enroll my N2N donation?

The benefit of this program is that your annual donations of $250 – $100,000 to Neighbor to Neighbor (N2N) can now qualify you for a 25% tax credit. If homelessness prevention fits your giving interests, you’ll want to take advantage of this tax credit opportunity. An additional benefit is that you can leverage this tax credit to increase your annual gift to N2N by 25%.

 

Why would I choose not to enroll my N2N donation?

Per the state of Colorado, if you enroll in the HCTC program, your donations to N2N will be directed exclusively to our homelessness prevention program. For example, this funding cannot be used for N2N programs such as Homebuyer Education, HomeShare and Resident Services. If it’s important to you that your gift remain unrestricted (allowing N2N to determine the designation of funds according to need), then this tax credit is not for you.

 

How do I enroll?  

You will be asked to provide the tax filer’s legal name and last four numbers of their social security number, as well as the preferred email address to receive your government-issued certificate. After enrollment, you can expect to receive an email from the state of Colorado regarding your designated HCTC. There are three ways to have your Neighbor to Neighbor donations designated to the Colorado Homeless Contribution Income Tax Credit:

1. Donate online and select Yes next to “I want to enroll my gift in the CO Homeless Contribution Tax Credit.” N2N will reach out before the end of February to obtain the filing taxpayer’s last four social security digits, as well as the preferred email address for your state of Colorado tax filing communications. 

2.  Email Director of Philanthropy Brooke Cunningham at [email protected]  and provide the Colorado tax filer’s legal name and last four numbers of their social security number, as well as the preferred email address to receive your government-issued certificate.

3.  Self-enroll your donation via the HCTC Salesforce Platform and select “Neighbor to Neighbor, Inc.”

 

When will I receive my certificate?

N2N will process all requests for HCTC donations by February following the tax year. Once your contribution has been approved by the State, you will receive a email with your certificate through the state’s secure portal.