South Central Kansas Medical Center is completing the application process for a state grant which, if approved, would help to raise funds for diagnostic imaging equipment while providing donors with a possible 70-percent tax credit.
SCKMC CEO Virgil Watson provided an example of how the tax credit program could benefit a donor.
“If your 2016 state tax liability was $1,400 and you want all of the state income tax you are expecting to pay in 2017 to go to our hospital project, you can donate $2,000 and receive a state income tax credit of up to 70 percent of your total donation, which would be $1,400,” Watson explained.
“In other words, you are sending your tax dollars to our hospital to be used for medical equipment upgrades, instead of going to Topeka.”
The tax credit would be eligible on a first-come, first-served basis to those who donate a minimum of $250 in goods, cash or services to the hospital project before the end of 2017.
In addition to the state tax credit, participants also would be eligible to deduct a percentage of their donation from their federal taxes because SCKMC is classified as a governmental entity, with similar tax benefits as traditional not-for-profits.
However, the federal deduction allowed will vary depending on the individual’s tax bracket.
“It’s a win-win-win. It’s a win for the hospital, it’s a win for the community and it’s a win for the donor because they now have control over where their tax dollars are spent,” said John Jones, SCKMC’s chief operations officer.
“Now you can say, ‘My tax obligation is being directed to where I want — supporting my local community,’ which I think is the most powerful thing about this whole program.”
The hospital plans on using the donations to purchase a state-of-the-art 3-D mammography unit and portable ultrasound equipment. The mammography upgrade is a requirement of Medicare, which has reduced reimbursement by 20 percent to facilities not offering 3-D technology.
“Every patient deserves the best, state-of-the-art technology that can be offered,” Jones said. “This will bring us to the cutting edge with 3-D mammography and the ultrasound will provide an indispensable diagnostic tool for emergency services.”
The deadline to submit the tax credit grant application is July 1. As part of the application process, SCKMC staff are seeking pledges for tax credit donations. Pledge letters must be received no later than June 30.
Those interested in pledging a donation should contact Watson at (620) 441-5900 or firstname.lastname@example.org.
This information was provided by South Central Kansas Medical Center Marketing Director Clayton Pappan.