ATLANTA — A new program allows taxpayers to make a donation and get the money back while helping change the life of a young adult on the verge of homelessness.
Although it sounds almost too good to be true, experts say this is a “win-win.”
In 2022, the legislature passed a bill to help fund programs that help kids aging out of the foster care system by allowing taxpayers to redirect their state taxes to a nonprofit.
The program created a dollar-for-dollar tax credit for a donation to one of 20 state-approved nonprofits. This is the first year the program has been in effect.
The state sets a $20 million cap each year, but only a fraction of people have taken advantage of the tax credit.
As of early December, there were still $16 million of tax credits on the table that would reset at the beginning of the year.
It’s money organizations like Christian City could use.
“We serve the most vulnerable populations: children who have been abandoned and abused and neglected. Remember, a lot of these young folks have done absolutely nothing wrong to be in the situation they’re in. They just happen to be in the foster care system,” said Keith Horton, Christian City CEO.
Along with children’s programs and assisted living support, Christian City offers an independent living program called Thrive that caters to 18- to 24-year-olds who age out of the foster system. It gives homeless youth stable housing and provides supportive services like food and transportation while encouraging further education to help them become independent contributing members of society.
“It costs a lot of money to take care of and provide these services for the youth,” Horton said. “We want to be able to increase our capacity to serve even more youth. Through these gifts, we’re able to do that.”
Horton added that it costs tens of thousands of dollars per youth to provide this opportunity. The tax credit, he said, is such a unique opportunity to help fund his program, that he decided to become a donor himself.
He also said he could give more this year, knowing he’ll get that money back during tax season.
“This could be one of the greatest Christmas gifts you can give,” he said. “Imagine an 18, 19-year-old is on the streets and you have an opportunity to help that individual level the playing field of life.”
A taxpayer cannot donate more than their state tax liability, but otherwise, there is no cap on donations through the end of 2023.
To make a donation:
- Request approval to make a gift through the Georgia Tax Center
- Give a donation amount of your choice
- Select which nonprofit you want to benefit
- File your tax return during tax season to get the money back
- Find more detailed instructions here.