How an Attorney can Complete Pro Bono Responsibilities
and Also Receive the Benefits of Tax Credits
By Russell P. Butler
Executive Director of the Maryland Crime Victims’ Resource Center, Inc.
Chair of the Maryland State Bar Association’s Criminal Law and Practice Section Council

Attorneys desiring to utilize charitable contributions to complete their pro bono responsibilities now have a way to maximize their contributions. If you contribute to organizations that provide legal services to persons of limited means, you can satisfy your pro bono obligations. However if you select a legal services program designated by the State to provide tax credits through the Community Investment Tax Credit Program (CITI), you can donate more at a lesser cost and receive the benefits of tax credits. CITI encourages Maryland businesses to support non-profits. Donating through CITI allows attorneys to target the impact of their charitable contributions on participating programs to maximize the benefit of a pro bono financial donation and support needed assistance in the legal community.

Pro bono obligations/reporting
Under the ethical rules for attorneys, a lawyer has a professional responsibility to render pro bono publico legal service, which may be satisfied by a financial contribution to organizations that provide legal services to persons of limited means. (Rules are found at http://www.courts.state.md.us/probono/probonorules.html) Eligible Maryland legal service organizations that you can financially contribute to help satisfy your pro bono obligations can be found at http://www.courts.state.md.us/probono/mlsc_providers.pdf.

While attorneys are not required to complete pro bono hours in Maryland, reporting pro bono is mandatory. The Maryland Rules require all Maryland licensed attorneys to file annual Pro Bono Legal Service Reports indicating the number of hours of pro bono service they rendered or contributions they made to legal services organizations in the previous year.

How CITI Tax Credits program works
Non-profits organizations apply for tax credit allocations through the State of Maryland. Once approved, business entities that donate directly to non-profits for approved projects receive tax credits equal to fifty (50) percent of the value of the donation. These tax credits are in addition to the normal federal and State deductions for full amount of the charitable deductions. Contributions under CITI must be of at least $500 in face value. Requesting the tax credit is simple. Businesses, including sole proprietors and partnerships, need only complete a one-page form to the non-profit.

CITI projects
The State of Maryland has on-line information regarding the CITI program at www.mdhousing.org/citi . For more information regarding participating in the CITI program, you can review http://www.dhcd.state.md.us/npp/index.asp or call Crystal Davenport in the Department of Housing and Community Development at (410) 514-7236 or (800) 756-1009. To determine the net economic cost of your charitable contribution, you need to consult your tax attorney or your CPA.

Maryland Crime Victims’ Resource Center, Inc.
A legal service provider participating in the CITI program, the Maryland Crime Victims’ Resource Center, Inc., (MCVRC) assists victims in the aftermath of crime. Originally formed as the Stephanie Roper Foundation and Committee, MCVRC strives to implement its mission of providing crime victims with comprehensive victims’ rights and services. With funding including from the Maryland Legal Services Corporation, MCVRC’s Crime Victim Legal Advocacy Program provides needed information and legal services to crime victims. MCVRC is one of a few select, approved non-profit organizations where you can receive CITI tax credit contributions.

Tax credits allow you to contribute more at a lesser economic cost
Without considering the tax advantages of your federal and Maryland tax deductions for charitable deductions, CITI’s tax credits program reduces the cost of your contribution in half. However, considering the available federal and Maryland tax deductions, your contribution costs you even less. Thus, you can determine both the gross and net amount of your charitable deduction to calculate the total impact of your contribution both to you and to the non-profit.

Maximize the benefits of your charitable contribution
Many people contribute to charitable causes for altruistic reasons. Some attorneys may donate as part of their professional responsibility requirements. Others may contribute because of the tax benefits they receive. Regardless of the reasons to make a charitable contribution, you should consider all of the potential benefits to maximize the impact of your charitable contribution. CITI tax credits provide important economic benefits for you to consider when determining your charitable contributions.

STOP - Consider a donation to MCVRC
MCVRC relies on charitable contributions to maintain the function of its organization. Victims of crime often do not know what they can do in the aftermath of crime. MCVRC helps victim with the consequences of crime and with dealing with the criminal and juvenile justice systems. You can make a difference and help victims with a contribution. If you would like to contribute to help MCVRC with its mission and at the same time receive the economic benefits of tax credits, you should contact MCRVC to see if you are eligible to receive tax credits for your contribution.

Mr. Russell P. Butler serves as Executive Director of the Maryland Crime Victims’ Resource Center, Inc. in its Upper Marlboro office. He concentrates his practice in assisting victims of crime. He is also the current Chair of the Maryland State Bar Association’s Criminal Law and Practice Section Council. You can contact Mr. Butler at rbutler@mdcrimevictims.org or 1-877-VICTIM-1.