The holiday season is a time to appreciate loved ones and good fortunes, and it often comes with a renewed enthusiasm for giving back. Thanks to a well-established program in Massachusetts, you can dramatically increase your charitable giving this year and directly support vital work within your neighborhood or community.
Over the past three years, thousands of individuals, families and businesses have used the Community Investment Tax Credit (CITC) – a 50 percent donation tax credit – to double the impact of their charitable giving and to support local tailored efforts to improve our communities and create economic opportunity. The program enables local Community Development Corporations (CDCs) across the commonwealth to:
- produce and preserve housing that is affordable to working families and seniors;
- help local entrepreneurs start, grow and sustain small businesses;
- organize residents to advocate for community improvement; and
- provide critical service to families, youth and seniors.
CDCs strive to address the racial and economic inequality that is prevalent across Massachusetts by supporting families within their community to ensure that everyone can participate in and benefit from our economy. This is both a challenge and an aspiration for a CDC, whether it is supporting scallop fisherman on the Cape, building housing in Chelsea or helping farmers in Greenfield.
The CITC program provides a 50 percent refundable state tax credit to state-certified CDCs. The minimum donation is $1,000, which yields a $500 state tax credit and can also be claimed as a federal charitable tax deduction. Some taxpayers have used the program to eliminate their entire state tax burden, while also supporting their local community.
If the holiday spirit has filled you with the sense of giving and you are looking for a worthy cause to which to donate, look no further than your own community. The CITC program is also open to corporations, foundations and donor advised funds seeking to make charitable contributions. It is a great way to ensure your dollars are spent locally and have maximum impact. Donations must be received by Dec. 31 to be eligible for this year. To take advantage of this amazing program, visit the MACDC website at https://macdc.org.