A new tax credit incentive, passed by the Mississippi legislature earlier in 2019, provides individuals and businesses with an opportunity to support Mississippi’s most vulnerable children by receiving tax credits for charitable donations to qualified non-profit organizations who meet strict criteria. Individual taxpayers may receive up to $1,800 in tax credits while corporate taxpayers and pass-through entities may reduce their Mississippi state tax liability by up to 50 percent through a dollar-for-dollar tax credit. The Children’s Promise Act is effective as of January 1, 2019.
Canopy has two entities that qualify for the Children’s Promise Act Tax Credit. Mississippi Children’s Home Society (DBA Canopy Children’s Solutions) has been designated as a Qualified Foster Care Charitable Organization (QFCCO),and CARES Center, Inc. (DBA CANOPY Children’s Solutions) has been classified as a Qualified Charitable Organization (QCO) by the Mississippi Department of Revenue, allowing individual donors to claim up to the maximum benefit of $1,800 under the tax credit.
“The solution to the child welfare crisis in Mississippi rests not in state government, but in each individual and business across this state,” said Dr. John Damon, CEO of Canopy Children’s Solutions. “All time is not equal. This tax credit provides a unique opportunity for each family and each business to step into the child welfare solution by supporting the work we do at Canopy across all 82 Mississippi counties.”
Programs like Canopy’s in-CIRCLE have made a drastic change in the landscape of foster care over the last 18 months. In 2018, Canopy served 2,070 children who were at risk of being taken into state custody.
“Our staff working with kids and families across the state are heroes who have consistently delivered demonstrable outcomes,” said Damon. “Last year alone, Canopy diverted over 2,000 children who have experienced abuse or neglect from entering state custody. This reflects a 97% success rate of keeping kids and families together and out of the system. The return on investment to the state was more than $60 million in savings and the return on investment to these children and families is incalculable.”
Through the financial bolster of the Children’s Promise Act Tax Credit, Mississippi children involved with Mississippi Department of Child Protection Services and partnering organizations will benefit from added resources made available through private donations. Those individuals and businesses looking to benefit from this new tax credit will need to act quickly as the tax credits available are limited – $5 million per year to be granted to business entities and $3 million per year to be granted to individual donors. Taxpayers must apply with the Mississippi Department of Revenue for the tax credit. To turn your tax dollars into meaningful solutions for Mississippi’s most vulnerable children, visit Canopy’s website mycanopy.org/taxcredit.
This information is not intended to give tax advice. Please consult with your tax professional about your specific tax questions.