Charitable Contributions Are NOT Considered in Domicile Determinations, According to New DRS Policy Statement

November 29, 2016

As the year draws to a close, many people plan their annual giving. Some may be reticent to give to Connecticut charities or join Connecticut boards fearing that their gift of time or assets may jeopardize their non-Connecticut domicile.

On September 21, 2016 the Department of Revenue Services (DRS) issued Policy Statement 2016(3). The statement reiterates the Connecticut regulation, stating “DRS does not consider charitable contributions in determining whether you are domiciled in Connecticut.”

It goes on to further define contributions to include money, personal property and uncompensated time.

If an individual comes to Connecticut solely to participate in charitable activities (donations of uncompensated time), “the day will not be considered for purposes of determining Connecticut domicile.” Such days will still count, however, for purposes of the 183-day statutory resident test.

Charlie Lenore, Esq., a partner at Day Pitney LLP, worked with the DRS on crafting the policy statement. Charlie considers the clarifying language “very positive for Connecticut charities. It follows the New York treatment of charitable activity and provides certainty.”

The CTCPA thanks Commissioner Sullivan and all those who worked on this policy statement for providing detailed guidance to Connecticut’s charities, citizens and their advisors.