(1) The general assembly hereby finds and declares that:
(a) The program allowing taxpayers to make donations to charitable organizations through their Colorado state individual income tax return forms, commonly known as the tax check-off program, has been a groundbreaking and profoundly important effort that has touched countless lives in myriad ways;
(b) Colorado's tax check-off program, which was the first of its kind in the country, was established in 1977 and has resulted in over thirty million dollars contributed to benefit the public through the work of Colorado nonprofit entities, inspiring similar programs in almost every state in the country;
(c) In fiscal year 2017, Colorado taxpayers received over one billion dollars in income tax refunds. The average refund was approximately five hundred sixty dollars.
(d) Between January 1, 2017, and November 1, 2017, Coloradans gave over one million seven hundred thousand dollars to support programs through the voluntary contribution options on their individual income tax return forms;
(e) Increasing the number of charitable organizations that taxpayers may designate on their tax forms can expand charitable giving throughout the state;
(f) Charitable organizations help contribute to vibrant communities across the state;
(g) Allowing Colorado taxpayers to designate a registered charitable organization of their choosing through a write-in line on the individual income tax return form will allow charities to raise additional funds earlier in the year, and will increase choices for taxpayers who wish to donate all or part of their tax refunds; and
(h) A program allowing the designation of a registered charitable organization of a taxpayer's choosing through a write-in line on the individual income tax return form would also be the first of its kind in the country.
(2) It is the intent of the general assembly to provide Coloradans the opportunity to designate contributions to registered charitable organizations of their choosing by establishing the donate to a Colorado nonprofit fund, allowing taxpayers to make voluntary contributions from their tax refunds on their income tax return forms. The general assembly further intends that this process be efficient and convenient for taxpayers, nonprofits, and the department of revenue and therefore encourages the department and the secretary of state to use digital resources and formats that increase efficiency and reduce the risk of errors in implementing the fund.
Source: L. 2018: Entire part added, (SB 18-141), ch. 290, p. 1787, � 1, effective August 8.
39-22-5102. Voluntary contribution designation - procedure - effective date. (1) (a) The executive director shall ensure that the Colorado state individual income tax return form contains a line for the donate to a Colorado nonprofit fund in the first income tax year:
(I) In which the department has received, on or before August 15, sufficient funds to implement this part 51 from gifts, grants, and donations, pursuant to section 39-22-5105;
(II) That begins on or after January 1, 2019; and
(III) That begins after the year in which the executive director files written certification with the revisor of statutes as specified in section 39-22-1001 (8) that a line on the income tax return form has become available and the donate to a Colorado nonprofit fund, created in section 39-22-5104, is next in the queue established pursuant to section 39-22-1001 (8).
(b) The executive director shall ensure that the line for the donate to a Colorado nonprofit fund appears on the form in each tax year after the year it is added pursuant to subsection (1)(a) of this section. The line must allow each individual taxpayer to designate the amount of the contribution, if any, and the name and such identifying information as the department of revenue may require of a single charitable organization from the list of eligible charitable organizations provided under section 39-22-5103 to receive the contribution.
(2) If a line on the individual income tax return form becomes available before the requirements of subsection (1)(a) of this section are met and the donate to a Colorado nonprofit fund is next in the queue established pursuant to section 39-22-1001 (8), the executive director shall file the written certification as specified in section 39-22-1001 (8) and shall ensure that the line on the form is reserved for the donate to a Colorado nonprofit fund until the requirements of subsection (1)(a) of this section are met. Notwithstanding any other provision of law, the executive director shall not use the line for another fund from the queue.
(3) The executive director shall notify the secretary of state when he or she files the written certification that a line has become available for the donate to a Colorado nonprofit fund under this section.
Source: L. 2018: Entire part added, (SB 18-141), ch. 290, p. 1788, � 1, effective August 8.
Editor's note: Pursuant to section 39-22-1001 (8)(b), the department of revenue advised the revisor of statutes on November 1, 2019, that the voluntary contribution for the donate to a Colorado nonprofit fund was added to the 2019 individual income tax return form.