Tax credit for for pregnancy help contributions a "huge benefit"

St. Raymond's Society

A Missouri maternity home is drafting a white paper regarding a significant tax credit for those who donate to pregnancy help housing ministry. The Maternity Home Tax Credit allows a 70 percent tax credit per $100 donation to a maternity home in the state. Missouri is one of five states with such a credit, along with Arizona, Louisiana, North Dakota, and Mississippi.

St. Raymond’s Society in Columbia, Mo., is one of the ministries that would benefit from the credit. The tax credit had previously been at a 50 percent rate when it began in 2018, and St. Raymond’s co-founders Steve Smith and Mike Hentges are making donors aware of the increase. The 70 percent credit can be applied to a donor’s state taxes and the other 30 percent is still eligible as a charitable credit.

This credit applies not only to maternity homes but pregnancy centers as well.

Smith refers to the connections between St. Raymond’s and pregnancy centers with affection.

“We’re the inn keeper and the pregnancy centers are the Good Samaritans,” he said.

Knowing that pregnancy center donations also qualify for the credit is a relief, Smith said. This is because the referrals between the centers and maternity homes are a connection necessary to help women in every scenario.

The social impact equates to dollars returning to taxpayers, making less than willing folks a bit more likely to write a check.

An accounting firm told Smith the total social impact of the tax credit is 511 percent.

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A gift of $1,000 could be as little as $141 out of pocket.

An example of how this works: A $10,000 donation made by someone in the 35 percent tax bracket would receive a $7,000 tax credit. Federal tax deductions would be $1,050. Missouri state tax deductions would be $180. The net out-of-pocket cost would be $1,770.

St. Raymond’s and other maternity homes and pregnancy centers in the state rely heavily on individuals, churches, and small businesses to meet their budget each year.

“We raise 100 percent through donations,” Smith said, adding that, “An individual can get up to $50,000 in (tax) credits.” 

 


The white paper explains:

“Tax credits are NOT deductions. Deductions reduce your total income before taxes owed are assessed, while tax credits directly reduce the amount of tax you owe. This means tax credits have a much greater impact on your Missouri taxes and can be a huge benefit to you.”

“Obviously this helps small business owners,” Smith said, as they choose to donate to the pregnancy programs.  

The white paper helps donors understand that maternity homes do more than provide a home for the woman and child. It is a place to help mom achieve and therefore not be as dependent on the state system.

The white paper “will show we are benefiting the state financially as well,” Smith said.

“We are not making this a pro-life versus pro-choice issue,” he said. “We are focused on education and helping the women to get resources so they can earn money and support their families.”

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Smith gave an example of one woman served by St. Raymond’s who managed to take classes to learn medical coding. She earned a job in that field and worked her way through nursing school. She is now a registered nurse.

“The biggest argument we get in this movement is that we don’t care after the baby is born,” Smith said, noting maternity homes like St. Raymond’s defeat that argument.

St. Raymond’s Society provides information on the tax credit HERE.

Similar tax credits are being considered in Ohio, Oklahoma, Kansas, Alabama, West Virginia, Kentucky, Tennessee, and Nebraska.

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