| Friends of the Farris, Inc. |
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| Neighborhood Assistance Program |
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| After-Tax Economics Illustration |
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| Assumptions: |
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| Contribution Amount: |
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$1,000 |
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| Neighborhood Assistance Tax Credit Percentage: |
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70% |
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| Donor resides in Missouri, qualifies for and fully utilizes NAP Tax Credit |
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| Donor itemizes deductions. |
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| Donor's Missouri Income Tax Bracket: |
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6% |
6% |
6% |
6% |
| Donor's Federal Tax Bracket |
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35% |
33% |
28% |
25% |
| Federal Tax Illustration |
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| Tax Savings from deduction for charitable contribution (% of $1000) |
A |
$350 |
$330 |
$280 |
$250 |
| Tax Cost of lowering the deduction for state taxes paid (% of item F below) |
B |
-$266 |
-$251 |
-$213 |
-$190 |
| Subtotal |
C |
$84 |
$79 |
$67 |
$60 |
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| Missouri Tax Illustration |
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| Tax Savings for NAP tax credit (70% of $1000) |
D |
$700 |
$700 |
$700 |
$700 |
| Tax Savings from deduction for charitable contribution (6% of $1000) |
E |
$60 |
$60 |
$60 |
$60 |
| Subtotal |
F |
$760 |
$760 |
$760 |
$760 |
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| Total Tax Savings (Federal and State) (Item C plus item F) |
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$844 |
$839 |
$827 |
$820 |
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| After Tax Cost of Contribution |
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$156 |
$161 |
$173 |
$180 |
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| Friends of the Farris, Inc. is a non-profit 501(c)3 charitable organization. |
| Please consult your tax advisor to determine your tax benefit of a qualified contribution. |
| This example is provided for illustrative purposes only and does not constitute tax advice. |
| Do not rely upon this illustration and indicated results without the consultation of a tax advisor. |
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