Vermont taxpayers may now deduct five percent of the first $20,000 in eligible charitable contributions made during the taxable year from their tax liability for that year. Vermont tax forms will include easy-to-follow instructions regarding how Vermonters can claim this Tax Credit.
For more information on this credit, visit one of these websites:
The Vermont Department of Taxes may be reached at (802) 828-2865 and recommends that taxpayers consult a tax professional for more individual guidance.
Vermont taxpayers who make eligible charitable contributions qualify to receive this tax credit, regardless of whether they itemize on their federal tax return. The Department of Taxes encourages taxpayers making eligible charitable contributions during the tax year to save all related documentation as the Department may request it after filing. Vermont’s individual income tax forms will include easy-to-follow instructions to claim this tax credit.
The Working Families Taxpayer Protection package was passed during the 2018 legislative session as part of Act 11 and went into effect on July 2, 2018. This act created a nonrefundable charitable contribution tax credit to be deducted from tax owed. Vermont taxpayers who take advantage of the credit may deduct five percent of the first $20,000 in eligible charitable contributions made during the taxable year from that year’s taxes. This law is retroactive to Jan. 1, 2018.
Please note that your pledge provides general funding to nonprofit organizations who use to best support their mission. County listings for nonprofits indicate that a nonprofit serves that county and includes organizations that serve statewide.
Funds are distributed to the eligible nonprofits quarterly, once the payroll deductions are received, and verified by the department against the monies owed. The last quarter of the calendar year’s payment to nonprofits are adjusted to reflect the actual cash received in the calendar year, as employees leave, retire, etc. Like other state funds these funds are susceptible to annual audit review. However, this program is not singled out for a separate audit annually but is treated the same as other state funds reported in the Comprehensive Annual Financial Report (CAFR). VtSHARES administration costs in 2018 were 2.60% of the total dollars contributed, and has been less since, which are minimal. Eligible nonprofit organizations are allowed to spend no more than 25% on administrative costs. No portion of the VtSHARES committee’s time spent is charged to the program. The administration costs are reflective of promotion, pins, and miscellaneous. Each United Way is audited annually and annual audits are a requirement for each nonprofit applying.
Through the outstanding oversight efforts of the VtSHARES Committee, a very small percentage of the funds raised are used for fundraising and administrative costs (in 2021, it was less than 0.75%). As this cost is so low compared with other fundraising campaigns, you can be assured that you will be using the most cost-effective method to support the organization(s) you choose to help. Every dollar you pledge goes a very long way toward helping others.
Nonprofit organizations receive funds donated, net of admin costs, which are deducted as a percentage of their total pledged dollars to total state dollars donated.
There is a formal application process each year for nonprofits to be included. Application materials will be posted on the Green Mountain United Way's website during the application period each Spring at VtSHARES | LIVE UNITED (gmunitedway.org).
To be considered, nonprofits should complete the application materials when available, and reach out to Green Mountain United Way at vtshares@gmunitedway.org | 802-613-3989 with any questions, and they'll be happy to assist. Applications are available early each calendar year to nonprofit organizations. Completed applications are to be returned to the coordinating umbrella organization by the Spring due date indicated for that year's VtSHARES directory, assuming the nonprofit meets the appropriate criteria. Please note that nonprofits must be a 501c3 organization and have been in existence for two years to be considered. If a nonprofit doesn’t apply or meet the criteria, they will not be included. Green Mountain United Way follows up with all applications once qualified completed applications have been reviewed by the VtSHARES Coordinating Committee. Those who qualify will be added to the directory for that year's fall Campaign. The nonprofit will begin receiving donations made by State of Vermont employees the following calendar year.
Employees can use the Nonprofit Organizations link for a complete listing of eligible nonprofits and other useful information. You may use Ctrl F to search using keywords important to you. If you need assistance in navigating the site, you are welcome to contact your agency/department's Campaign Ambassador.
You may dial 211 to get information about organizations near you that help individuals and families with the particular needs you're interested in supporting. Please remember that organizations must be listed in the VtSHARES Campaign directory for you to contribute through this program. VtSHARES is a great way to pledge since you can deduct your giving automatically through payroll deductions.
