Unique ZERO-COST Donation Opportunity

HOW DOES THE ZERO-COST
DONATION WORK?

Assume, as an example, that you make a $10,000 donation to the Soho Center and our Virginia Health Information Project.

This $10,000 donation will give you the standard $10,000 federal deduction worth approximately $3,500 of federal tax savings.

In addition, you will receive a 65% Virginia Income Tax Credit - in this case a credit of $6,500. You can use this tax credit, dollar-for-dollar, to pay your Virginia income tax obligations (or receive a refund of previously-paid taxes from the current year).

In other words, your donation of $10,000 gives the Soho Center $10,000 of support - while lowering your combined federal and state taxes by $10,000 - which makes the net cost of your donation zero.

You can, of course, scale the donation amount in this example up or down as you wish, but the zero cost remains.

WHAT'S THE "RIGHT" DONATION AMOUNT?

Donors often ask what is the "right donation amount" to make - especially when the donation doesn't cost anything.

Our general advice (if you want to do the most good) is to take your total annual Virginia income tax obligation and multiply it by 1.5 to get the "right" amount.

Here's why -

If, for example, your total annual Virginia income tax obligation is $5,000, then donate $7,500 ($5,000 x 1.5). If you do this, the 65% tax credit you receive will be approximately $5,000 which will essentially redirect your entire year's worth of Virginia income tax, giving the maximum donation to the Soho Center - at no cost to you.

In other words, multiplying your total annual Virginia income tax obligation by 1.5 and donating that amount will create a tax credit that will complete eliminate your Virginia income tax, and it will lower your federal tax by an amount that will make your total donation cost nothing.

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If you have any questions or are ready to make a donation and take advantage of this unique zero-cost option, please call Soho's Director, Jeanna Beker, at 540-923-5012 to get the simple half-page form needed for your Tax Credit* from the state.

NOTE: If you make your donation with appreciated assests (stock or other securities), your tax savings will be even bigger since you won't have to liquidate them (and pay capital gains) before using the net proceeds to make your donation.