Rooks County Health Center News
Kansas Department of Commerce announces Community Service Tax Credits
More than $4 million to be distributed among 21 non-profits including RCH
The Kansas Department of Commerce has awarded $4.13 million in Community Service Tax Credits to 21 nonprofit organizations around the state, officials announced today.
Rooks County Health Center will receive $175,000 in tax credits. “We sincerely appreciate the Kansas Department of Commerce awarding the Tax Credit Award to Rooks County Health Center. This will allow other funds to go for necessary improvements to keep the health care service up to expected standards," Stated Julie Price, CEO/CFO at RCH.
These future Kansas income tax credits are used as a major fundraising tool for community organizations engaged in services for children and families, health care or crime prevention. “We¹re excited to award tax credits to these very deserving organizations,” said Kansas Department of Commerce Secretary David Kerr. “These tax credits are a great way to spur investment in community improvement projects throughout the state.”
"These tax credits will allow us to purchase a medication distribution system for the management of medication in the central pharmacy and nursing unit, helping our staff ensure patient safety, monitor and control medication dispensing and ultimately improve patient care. Traditionally equipment such as this would be financially out of reach for a rural hospital. This credit is an incentive for businesses or individuals subject to Kansas income tax or Kansas privilege tax to help with this project,” said Kathy Ramsay, RN, Communication and Development Director.
The Community Service Tax Credit Program is a way for charitable organizations and public health care entities to improve their ability to undertake major capital fund-raising drives for projects involving children and family services, non-governmental crime prevention and health care. Each year, non-profit community service organizations submit proposals for review by the Kansas Department of Commerce. If the organization is awarded tax credits, it’s then authorized to offer tax credits to donors making contributions to the approved fund-raising project.
Tax credits totaling $4.13 million are allocated to these groups annually at a rate of 70 percent in rural areas and 50 percent in non-rural areas. For example, qualified donors who give $1,000 to an approved project in a rural area would receive a 70 percent (or $700) tax credit against their Kansas income tax liability. In addition, the donors would receive federal tax benefits, if they itemize, which would again decrease their tax liability.
The Community Service Tax Credit Program has been quite effective in recent years with the total number of contributions to non-profit projects increasing 71 percent in the past five years. Kansas non-profits have reacted to this increase in contributions by submitting more applications for tax credits each year since 2001. In other words, the Community Service Tax Credit Program is encouraging more donations to charitable projects, which has led to an increase in the number of projects undertaken and an improved quality of life in dozens of Kansas communities.
If you would like more information on this opportunity, please contact Kathy Ramsay, RN Communication and Development Director at 785-434-4553, ext. 288.