Act 60, also known as the Puerto Rico Incentives Code, was enacted to consolidate various tax incentives, fostering economic development on the island. For nonprofits, this legislation presents unique opportunities, particularly in connecting with high-net-worth individuals benefiting from the island's tax incentives, such as under the prior Acts 20 & 22.
Supporting Nonprofits Under Act 60
One provision of Act 60 is the annual $10,000 charitable contribution requirement for individuals under Act 22/60 decrees. These donations must be made to Puerto Rico-based nonprofit organizations recognized under the Internal Revenue Code 501(c)(3) and certified by Section 1101.01(a)(2)(A)(i) of the Puerto Rico Incentives Code. Love The Nations is proud to be one such certified organization, making it eligible to receive these contributions.
Why This Matters
This framework is a significant lifeline for local nonprofits. It directs substantial funding toward organizations addressing critical social issues. Donations often support initiatives that might otherwise face underfunding, such as crisis pregnancy centers, healthcare access, and educational programs.
Encouraging Tax-Advantaged Giving
For donors, these contributions help fulfill residency requirements while supporting meaningful causes. However, we always recommend consulting a tax advisor to ensure compliance and proper allocation of your $10,000 charitable contribution. This blog is informational and not intended as tax advice.
Partnering With Love The Nations
At Love The Nations, we’re dedicated to serving vulnerable populations and fostering long-term transformation. Your support, particularly through Act 60 donations, helps us expand our reach and impact. By choosing us, you contribute to life-changing programs and align with an organization committed to transparency and purpose-driven work.
By combining compliance with Acts 20/22/60 and community-minded philanthropy, residents and nonprofits alike can collaborate to enhance Puerto Rico’s social fabric.
Sources Cited
Puerto Rico Incentives Code, Act 60 of 2019. Puerto Rico Office of Legislative Services. Accessed December 9, 2024. https://bvirtualogp.pr.gov/ogp/Bvirtual/LeyesOrganicas/Pages/60-2019.pdf.
(This official document outlines the legal framework for tax incentives under Act 60, including nonprofit donation requirements and exemptions.)
"The Requirements for the Act 22 and 60 Donation." Relocate Puerto Rico. Accessed December 9, 2024. https://relocatepuertorico.com/the-requirements-for-the-act-22-and-60-donation/.
(This article explains the eligibility criteria for Act 60 charitable contributions and how they benefit Puerto Rico-based nonprofits.)
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