Where Community Support Meets Tax Savings: Virginia's Neighborhood Assistance Program

When it comes to building stronger communities, collaboration between government agencies, nonprofits and private donors is crucial. The Virginia Department of Social Services (VDSS) and Department of Education (DOE) run an initiative called the Neighborhood Assistance Program (NAP). This program serves as a bridge between those who want to contribute to their communities and those who need assistance the most.?

Not only does this program facilitate much-needed aid to various causes, but it also offers attractive incentives for donors in the form of generous Virginia income tax credits.

What is the Neighborhood Assistance Program?

The Neighborhood Assistance Program is designed to encourage partnerships between businesses, individuals, and non-profit organizations to develop innovative solutions for community challenges. When donors give to NAP eligible non-profit organizations, they receive a generous 65% credit toward their Virginia state income tax liability. These organizations, in turn, utilize these donations to support community projects that address critical needs such as affordable housing, education, healthcare, job training, and more.

Why NAP Matters: Impact on Communities

The Neighborhood Assistance Program plays a vital role in fostering community development and social welfare in Virginia. By incentivizing private investment in community projects, NAP helps leverage additional resources to address a wide range of social issues. Here are some key reasons why NAP matters:

• Local Solutions: NAP empowers local organizations to develop and implement solutions tailored to the unique needs of their communities. Whether it's providing affordable housing, supporting education initiatives, or promoting economic development, NAP-funded projects make a tangible difference in people's lives.
• Strengthening Partnerships: NAP fosters partnerships between government agencies, businesses, nonprofits, and individuals, creating a collaborative ecosystem for community development. By working together, stakeholders can pool resources, share expertise, and maximize the impact of their efforts.
• Economic Benefits: Investing in community development through NAP not only improves the quality of life for residents but also enhances the economic vitality of neighborhoods and regions. By addressing issues such as workforce development, housing affordability, and access to education, NAP helps create a more prosperous and sustainable future for all.

How to Get Involved

NAP donations are a simple and convenient way for a Virginia taxpayer to make a positive impact in our community -- AND generate a credit to reduce their Virginia income tax liability. Here's how you can get involved:

• Discover Approved Organizations: Explore the list of approved, local organizations in your area participating in NAP to find causes and projects that resonate with your values and interests.?Paul Souder, who administers the NAP funding at Friendship Industries and Able Solutions, discusses an easy way to access this list.?"We still have a limited amount of NAP credits available from our 2023-24 allotment. I’m happy to share a list of 21 non-profit organizations in Harrisonburg and Rockingham County approved for NAP donations in 2023-24. I can walk a new donor through the easy process of inquiring and filling out the NAP paperwork.”?
• Make a Contribution: After confirming that your preferred non-profit organization has NAP tax credits available to distribute, make your donation in cash, stocks, or even certain in-kind services. The minimum donation is $500 for an individual or $616 for a business or trust. (For example, a $500 donation will reduce your Virginia income tax bill by $325.)
• Claim Your Tax Credits: The non-profit organization submits the NAP paperwork to Richmond and will send you the tax credit certificate after it's approved. Work with your tax professionals to ensure these are listed on your Virginia state income tax return.
• Spread the Word: Encourage others in your network to learn about NAP and consider participating as donors or volunteers, amplifying the program's impact across the state.

Virginia's Neighborhood Assistance Program is a testament to the power of collaboration and community-driven solutions. By incentivizing private investment through tax credits, NAP not only provides much-needed support for vital projects but also fosters a culture of civic engagement and responsibility. Through NAP, individuals and businesses have the opportunity to make a meaningful difference in the lives of their community while also enjoying the benefits of tax savings.?

If you are interested in taking advantage of these credits feel free to message me with questions or reach out to Paul Souder directly ([email protected] or 540-434-9586).?