Zero Cost Donation Option for Individuals and Couples
in the 15%, 25%, or 28% Federal Tax Brackets
This includes partners in partnerships, LLPs, sub-chapter S corporations,
or other such entities who pay their federal income tax as individuals

his unique no-cost opportunity is made possible by combining three factors - your standard federal deduction, a 65% Virginia income tax credit*, and the generosity of a long-time supporter of the Soho Center and our Virginia Health Information Project who will give you a personal gift by check to bring the net, after-tax cost of your donation to zero.  In effect, you will redirect state and federal taxes you would have paid anyway and get a gift check that makes up the difference.

Here's an example of how it works -

Let's assume you are in the 25% bracket federally, you pay $6,000/year in Virginia income tax, and you decide to make a $9,000 donation to the Soho Center.  

Here's what happens -

You donate:

You get a VA tax credit*
         (65% of $9,000 = $5,800)
You use this credit dollar-for-dollar to pay
your VA income tax.  In this example, your
$6,000 Virginia income tax is lowered by
$5,800 to only $200.

($ 5,800)
Your federal tax is lowered by:                      
       (25% of $9,000 = $2,750)

($ 2,750)
You get a personal gift check                         
      to zero out your donation cost:

($   450)
Net Cost of your $9,000 Donation:  $  - 0 -

In this example, one of several Soho Center supporters will make you a personal gift (by check) to bring your after-tax net cost to zero.  In this case, the gift would be $450.  This $450 is a true gift under IRS rules  - there is no coercion and the gift is not taken as a deduction by our supporter.  Further, our supporter will neither seek nor receive any benefit from you (services, payment, etc.) for having made the gift.  And since the gift is less than $13,000, neither you nor our supporters have any IRS reporting obligation. (And, regardless of its amount, such a gift has no tax effect on you, the recipient.)


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.

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.

*Tax Credit information - The Soho Center is a 17 year participant in Virginia's Neighborhood Assistance Program.  This innovative state program rewards donors to the Soho Center with an income tax credit worth 65% of their donated amount.  This tax credit can then be used, dollar-for-dollar, to pay the donor's Virginia income tax obligations.  Any excess credit can be rolled forward and used by the donor for up to 5 years.  For more information on this tax credit program, please call the Soho Center at 540-923-5012.


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