Donors to The Safe House for Women, Inc., in Cape Girardeau can get half their donation back as a Missouri income tax credit, thanks to new state legislation.
The tax credits are retroactive to donations made since Jan. 1, 1998 and apply to donations of $100 or more made during the fiscal year.
"It's a fantastic deal. A tax credit is even better than a tax deduction," said Paula Huggins, executive director of the Safe House. Huggins is also a certified public accountant.
"We have to do fund raising to stay in business," Huggins said. "This is a tremendous incentive for people and businesses to contribute to us."
Usually, donations to charities, like the Safe House, are eligible for a tax deduction. A $100 donation would generate about $6 in tax deductions.
With this new tax credit, a $100 donation to an eligible domestic violence shelter will generate a $50 state income tax credit.
"If a business donates $10,000, it is as if $5,000 of the income taxes they would owe to the state of Missouri are paid," Huggins said. "We're giving back half the donation."
In addition, tax credits can be carried over to the next four succeeding years until the full credit has been claimed.
The local Safe House can issue up to $48,780 of these tax credits from Jan. 1 to June 30, 1998. On July 1, a new amount will be designated for the shelter to issue.
Shelters and homes must be approved through an application process. For the first round of credits, $2 million was divided equally among 41 qualified applicants. A few more applicants may come on board for the second round.
Huggins said she will notify contributors who have already made donations to the Safe House this year about the credit.
To qualify, Huggins must submit a photocopy of the front and back of the canceled donation check along with a voucher.
The process is simply, she said. In the past, other tax credits available have had so much paperwork and red tape involved that the credit didn't seem the hassle.
The measure, House Bill 491, was passed by the Missouri legislature and sponsored by Sen. Ted House of St. Charles.
"Domestic violence, in which innocent women and children are beaten and abused in their own homes, is a horrible crime," said House. "While we must do everything possible to prevent these tragedies this measure is designed to support these shelters that often operate on a shoestring budget."
Huggins said the Safe House relies on charitable contributions to operate.
"All our services are free of charge and many of the women escape with little more than their lives and a change of clothes for them and their children," she said.
"Our community has been very supportive of our mission and these tax credits will assist us to continue our efforts."
The Safe House is the only domestic violence shelter in Cape Girardeau County. It also serves women in Scott, Bolinger, New Madrid and Mississippi counties. Operating since 1990, the 16-bed facility offers 24-hour services including crisis intervention, legal advocacy, peer support groups, counseling, transportation and shelter.
The Safe House is almost always filled to capacity and refers to other regional shelters when necessary.
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