KS Community Service Income Tax Credit Grant
States allocate a certain amount of money to be used for an Income Tax Credit Grant. There are multiple types in KS, our goals is the Community Service focus (Item 1 on Pg 6 of attached document). Donors receive 50% of the donation value (if over $250 in value) in income tax credits for their KS income tax return to be used the same tax year.
How does it work?
- Non-profits solicit proof of community support. This is done through letters helping prove the need, impact of the services provided for the clients, how your business or community will benefit, and testimonial letters demonstrating the strength of the programs. The second is done through pledge letters from both individuals and businesses demonstrating the community’s financial support of this project.
- The grant application is submitted by May 31st and award results are made on or after July 1st.
- Pledge donations may be fulfilled after award notification is received and before Dec 31st of the next year. You have 18 months to fulfill the donation pledge.
- A transfer form will be completed issuing you or your business the KS income tax credits equal to 50% of the donation amount to be used on your KS income taxes in that same tax year. Minimum $250 donation required to receive income tax credits.
What is the project?
The purpose of the applying for the grant is to purchase a building. Ideally, we will be able to lease some of the space to generate the income needed to cover overhead expenses such as utilities, maintenance, insurance, and taxes.
The space will benefit the clients by allowing Moneytalk to provide additional services and expand existing services. It will also allow us to offer more services through collaboration with other businesses and non-profits. These additional services will also allow us to provide more volunteer and sponsorship opportunities for businesses and the community.
Why is this so important? What would be the impact?
Moneytalk was already needing to move from a home-based non-profit, renting and borrowing space for workshops and other needs, to having their own permanent space. Now, due to the exploding increase in number of individuals and families needing assistance, Moneytalk needs their own space more than ever. While this may sound like it is just overhead, our own space is the only roadblock to our ability to:
- Host the Drop & Shop store. We have received over 850 items for the free clothing store including clothes, coats, shoes, purses, belts, and jewelry.
- Accept donated vehicles – a dealer’s license is required to accept donated vehicles and provide a charitable donation receipt; qualifying for a dealer’s license requires our own separate secure space.
- Access to pull client credit reports – separate secure space required by credit reporting agencies
- Begin a Homeownership Center – helping clients prepare, purchase, and maintain a home by partnering with businesses specializing in homeownership. Partners will have an annual sponsorship will create sustainable income. Our partners will have the ability to establish a connection with potential customers and establish their expertise in their field and with their products.
- Increase volunteer opportunities needed to support the increased client requests
- Ability to support financial literacy education & coaching for the increasing number of clients (Ongoing Support participation requires participation in financial literacy, this is a hand-up not a hand-out)
- Meet client requests for positive support opportunities. These opportunities not only help single moms to have a short get-away, but adult conversation, a good listener, and help without ulterior motives.
- Set up a food pantry, including non-food items such as laundry supplies, feminine care products, bath soap, shampoo, toothpaste, and so on. Some of our clients do not receive food stamps.
- Provide opportunity to “purchase” new items using only the credits earned through program participation and progress toward financial stability. The ability to shop for and receive new items is a huge boost for one’s self-esteem and self-confidence. These items would include small appliances, new clothes and shoes, bedding, towels, batteries, baby items, cleaning supplies, pots and pans, dishes, candles, humidifier, and more. For a small admin fee, we can receive donations from many different stores.
- Qualify for grants we currently cannot even apply for because we do not have our own space and at least 2 paid employees. Funders consider Moneytalk unsustainable and will not support us. We have never received any government funding. All of the COVID relief funds require our own space & paid staff.
- Hire some of our clients, homeless veterans, and others who need an opportunity for current work history on their resume and a second chance.
- Have a few paid staff to provide consistency in the services we provide for those in need. Grantors are more likely to fund a non-profit they consider sustainable which means our own space and paid employees.
- Provide washers and dryers for those who do not have access to them or suffer the cost of laundry mats.
- Host community events and activities such as an art show for students in area schools, a summer art camp, or a summer financial literacy camp for teens & young adults.
- Offer cooking classes, through partners. Clients cannot be more economical with their grocery budget without it. Many do not know how to cook or have the equipment necessary, therefore they rely on the more expensive and less healthy fast-food, already prepared foods at the store, and highly processed quick cook options.
We have a potential lead on a contact who can help us purchase a building at a huge discount, possibly a former government building. Also, there is funding available to rehab these buildings and remodel the interior to meet your organization’s needs. From what I have been told, if we can complete the remodel with money left over (such as volunteers to do some work or discounted materials), we get to keep what is left. We just need to get the funding to be able to purchase the space.
How can I help?
There are several ways you can help ensure the success of this grant application to benefit the entire community. More information can be found in the document attached at the end of this page.
- Make a pledge of support. These financial pledges equate over 20% of the overall evaluation score, the 2nd most important aspect of the evaluation score. The pledge can be cash or non-cash. But, non-cash pledges must be included in the application and directly related to the project to be eligible for the income tax credits. Business pledges must be made on company letterhead.
- Write a short letter stating how improving a client’s financial stability is going to benefit your company, your organization, your community, etc. If you know of specific examples to help demonstrate the need for these financial literacy services, include that as well. Proving the need is the most important aspect in the evaluation score. Proving community support is approximately 10% of the evaluation score.
- Share this opportunity for helping those in need, while getting a tax credit, with other businesses and individuals you know.
Submit Your Pledge
2020-2021 Application Guidelines
While the guidelines may change from year to year, this document will provide you with the May 2020 application guidelines. We anticipate the guidelines to be similar for the 2021-2022 grant cycle.