TAX CREDIT FAQ
The NYS Charitable Tax Credit Program Key Facts 2023
- A time-limited opportunity for an individual to make a donation to Westchester Community College Foundation and receive an extraordinary tax benefit through the SUNY Impact Foundation.
- The minimum gift is $10,000 and the maximum gift is $100,000 per donor/tax ID number.
- There is a $10 million cap on the program SUNY-wide.
Income Tax Benefits of the NYS Charitable Tax Credit Program
- New York State: 85% of the qualified contribution is an income tax credit. 15% of the qualified contribution is deductible for NY State. Donor must have tax liability in the amount of the gift or higher to qualify.
- Federal: 15% of the qualified contribution is deductible.
NYS Charitable Tax Credit Program Process
- Contact Caroline Colon-Lopez at WCC Foundation for an application at caroline.colon- firstname.lastname@example.org or 914-606-6451 to begin the authorization process.
- The donor must have an authorization from the SUNY Impact Foundation to participate.
- All qualified applications received by 5:00 pm September 30 will be accepted.
- If a total of more than $10 million in applications across SUNY has already been received by September 30, the amount approved for the income tax credit will be prorated downward regardless of the date the application was received.
- If the cap of $10 million has not been reached by October 1, additional qualified applications to participate in the program will be approved on a first-come, first-served basis.
- All donations must be made payable to SUNY Impact Foundation, Inc., not to the WCC Foundation, in order to qualify; SUNY Impact Foundation subsequently grants to the funds to WCC Foundation.
- All donations must be received by November 30, 2023, to qualify. Stock transfers must be initiated by November 20, 2023. Wire transfers must be initiated by November 28, 2023.
Ways you can make your donation
- Check (must send with tracking from USPS or other delivery service)
- Wire transfer
- Credit card (credit card fee applies)
- Combination cash and stock
Frequently Asked Questions
Can I be confident that the funds will get to SUNY Westchester Community College?
Yes! SUNY Impact Fund retains a very modest 2% fee for processing and reporting the contributions.
Can I receive the tax credit if I give through a donor advised fund, family foundation or retirement fund?
Unfortunately, no, any contribution that has already passed through another tax vehicle is not eligible according to NYS guidelines.
Are there tax liability requirements for taking the tax credit in New York State?
Yes, you must have a New York State tax liability of the amount of your gift or greater in order to receive the tax credit regardless of your state of residency.
Will I have a better chance of having my application approved if I get my request in early?
All applications received by September 30 are treated equally no matter when they were received. After October 1, if applications are still being accepted, they are taken on a first-come, first-served basis, so getting your application in as soon as possible is advised.
Why do stock gifts go through University of Buffalo? Do they still get to SUNY WCC?
The University of Buffalo graciously takes care of clearing stock gifts for the SUNY Impact Fund without charging a fee. The proceeds of your stock sales still go to the SUNY college to which they are designated.
Am I able to direct my gift to a specific scholarship or other program at SUNY WCC?
Yes, we are happy to discuss your wishes for directing your gift.
Can a corporation make a tax-advantaged gift through this program?
No, NY State has made this tax credit available only to individuals, no corporations, no S-corps. Checks and transfers must be made from personal accounts, not corporate accounts.
Can I get a matching gift from my company for my NYS Tax Credit gift?
Yes, please indicate on your application that you are applying for a matching gift so that it can be tracked and attributed to WCC Foundation.
Are in-kind gifts accepted?
Unfortunately, no, we are not able to accept in-kind gifts for the NYS Tax Credit program.
Is this program offered every year?
While we hope that the program will continue in the future, it is considered in each year’s New York State budget and there are no guarantees that it will exist in future years.
Is there a corresponding tax credit for New York City?
No, the tax credit is a New York State tax credit only.
Should my spouse’s name be listed on the application?
If your spouse is writing the check and/or transferring funds and has a different last name, please include your spouse’s name on the application.
Are there any special points to keep in mind for stock gifts?
Stock orders must be placed for transfer by November 20, 2023. Requests to transfer stock should not be mailed. Pink sheet stocks for over the counter and other securities that face restrictions are not eligible. Sale price is not always the same as valuation. Per IRS guidelines, valuation of a donor’s security gift is the average of the high and low price on the date of receipt by the charity, multiplied by the number of shares contributed.
Where can my tax professional or I find more information on this tax credit?
The New York State Charitable Tax Credit for Higher Education can be found within Chapter 59 of the laws of 2018, Part LL. It references Article 22 and Section 606 of the NYS tax law. Regulations were summarized in Internal Revenue bulletin 2019-109.
How do I claim my tax credit?
The receipt number issued will be used in your NYS income tax filing, even if using a service such as TurboTax.
Can I roll the credit forward if I do not have a big enough tax obligation this year, or can I use it to fulfill previous years’ tax obligations?
No, this income tax credit is only available for 2023 gifts and tax obligations.
Can my contribution be used toward special events?
The tax-deductible portion only of your special event participation can be paid through the NYS Charitable Tax Credit Program. Any non-deductible portion of your payment, such as for tickets at a dinner, cannot be paid through the program. For example, if a table of 10 at an event is $5,000 and the non-deductible portion is $150/ticket or $1,500, only $3,500 of your gift through this program can go toward your table purchase.
This sheet is informational only and does not constitute tax advice. We recommend that you consult with your own tax advisor before making any significant financial decisions.
For more information, contact:
Caroline Colon-Lopez, Executive Administrator
Dolores Swirin-Yao, Executive Director