The Neighborhood Assistance Program was created in 1981 by the General Assembly to provide tax incentives to businesses and individuals to encourage their participation in helping to alleviate poverty. Eligibility is limited to 501 (c) 3 or 501 (c) 4 organizations whose primary function is providing assistance for impoverished people in the Commonwealth.
Beginning July 1, 2007, individual and business donors have been eligible for a tax credit equal to 40 percent of the value of their cash donation of $500 for individuals and $1,000 for businesses. Donors may use the tax credit on their state income tax return and also claim the contribution as a charitable deduction on their federal income tax return. Only cash donations are eligible for individuals; cash and in-kind services are eligible for businesses.
For tax purposes, the minimum cash donation must be met between the periods of July through December 31 or between January 1 through June 31 of any given tax year. Provided the contribution is met during the appropriate periods, it could be from several accumulated donations.
Should you wish to apply for this tax credit or need additional information, please contact Kim Lally, Director of Development