For an understanding of the potential impact of this tax credit in allowing you to spread your donation dollars further – a $1000 donation to The Sparrow’s Nest could earn you a $500 Missouri state tax credit which comes directly off your total tax bill. If you owed the state of Missouri $750, the $500 tax credit would reduce your tax bill to $250 and you could potentially count the entire $1000 as a donation off your federal income tax as well. For a $1000 donation, you could save more than $800 off your taxes depending on your tax bracket!