NAP Tax Credits
The Neighborhood Assistance Program (NAP) provides state income tax credits as incentives for individuals and businesses to contribute directly to approved nonprofit organizations who serve the impoverished. Contributions may be in the form of cash, goods, stock, real estate, professional services, contracting services and rent/lease of space. Individual contributions are limited to cash or marketable securities. In return for their contributions, businesses and individuals receive credits that may be applied against their state income tax liability.
In 1981, Virginia’s General Assembly created the program to provide tax incentives to individuals and businesses to encourage participation in helping to alleviate poverty.
How Does NAP Work?
Individuals contributing to an approved NAP organization may receive a state tax credit of 65 percent of their cash donation. Catholic Charities is asking donors to make a gift of 50% more than the tax credit they will receive to maximize the support for our progams for the poor and low-income families we serve. No tax credit will be issued for contributions of less than $1,000 (minimum) or in excess of $125,000.00 (maximum) per tax return, per taxable year.
Tax credits may be available to a business making a donation of at least $1,000.
Example for a donation made to Catholic Charities through the NAP program:
Minimum - $1,000 donation X .50 = $500 tax credit
A donor makes a gift of $1,000 and receives a 65% credit on $769 of their donation equalling $500.
Tax credits may also be available to individuals or married couples donating cash or marketable securities directly to approved NAP organizations.
You may also be eligible for a federal tax deduction. Please consult your tax advisor.
For information about the NAP Program, you may go online to: (see the link below) or if you would like to make a donation using NAP credits, please contact the Director of Development or call 757-456-2366 Ext. 504.