Income Tax Check-off Nonprofit Donation Fund

Income tax - return form - voluntary contribution program - donate to a Colorado nonprofit fund - creation - queue - repeal. The act creates the donate to a Colorado nonprofit fund (fund) in the state treasury. A voluntary contribution designation line for the fund will appear on the state individual income tax return form in the first income tax year:

• In which the department of revenue (department) has received sufficient funding to implement the program;
• That begins on or after January 1, 2019; and
• That begins after a space becomes available and the fund is next in the queue.

If the space for the fund becomes available before all 3 conditions are met, the department must hold the space for the fund until all 3 conditions are met and include the line thereafter.

The line will allow a taxpayer to designate a contribution to an eligible charitable organization (eligible organization) of their choice. The secretary of state must provide a list of eligible organizations to the department. To be eligible, an organization must have been registered with the secretary under the "Colorado Charitable Solicitations Act" for at least 5 years, be in good standing as of the date the list is created, and be a nonprofit that is tax exempt under section 501 (c)(3) of the internal revenue code. A charity may request to exclude itself from the list. A taxpayer may choose a single charity from the list to receive the contribution through the fund.

Once the fund is placed on the form, the department will determine each year the total amount designated to the fund, and the total amounts designated to each eligible organization, and report those amounts to the state treasurer and the general assembly. The state treasurer will credit the total amount to the fund. The general assembly will appropriate from the fund to the department, the secretary of state, and the state treasurer their actual, reasonable costs for administering the fund.

After the appropriations for the administration of the fund are deducted, the state treasurer will distribute the contributions to the charities as designated by taxpayers after a reduction proportionate to the amount deducted from the fund for administration. The department is not liable to a taxpayer or charity for an error in distributing a contribution.

If the department does not raise sufficient funding to implement the program through gifts, grants, and donations by September 30, 2020, it must notify the revisor of statutes, and the program is repealed effective the date of the notice.

The fund is not subject to the time limitations and minimum contribution requirements imposed on voluntary contribution funds.

(Note: This summary applies to this bill as enacted.)