Neighborhood Assistance Program (NAP) Tax Credits

Contribute to the Delta Gamma Center for Children with Visual Impairments Capital Campaign and save money on taxes at the same time.

The Delta Gamma Center Capital Campaign has been approved by the Missouri Department of Economic Development, from the period of January 1 through December 31, 2009, to participate in the Neighborhood Assistance Program (NAP) Tax Credits. Eligible donors utilizing NAP Tax Credits can give the Delta Gamma Center Capital Campaign full benefit of their donation while allowing themselves to benefit on both their state and federal tax liability.

What are NAP Tax Credits?

NAP Tax Credits are fundraising tools that help nonprofit organizations obtain the funds necessary to carry a project through to completion. NAP Tax Credits enable eligible donors to donate a portion of their Missouri tax liability to designated nonprofit initiatives, like the Delta Gamma Center’s Capital Campaign.

Donors may claim the tax credits when they file their Missouri tax return. As an incentive, the tax credit not only maximizes the amount a donor might give, but also provides an opportunity for businesses, state government, and the nonprofit sector to build and sustain communities by establishing solid public-private partnerships. Additionally, donors can claim their entire contribution on their federal income tax return as a charitable donation.

Who are eligible donors?

• Corporations – Missouri Form 1120
• Small Business Corporations (S Corp) – Missouri Form 1120S
• Limited Liability Corporation/Partnerships – Missouri Form 1120, 1120S, 1065
• Partnerships – Missouri Form 1065
• Individual partners in a partnership or shareholder in an S Corp – Federal Form 1040, Missouri Form 1040
• Banks, Credit Institutions, Saving and Loan Associations, Credit Unions, Farmer’s Cooperative Credit Associations, or Building and Loans – Missouri Financial Tax Return
• Insurance Companies – Missouri Insurance Tax Return with the MO Dept. of Insurance
• Individuals who:
  • Have rental property in Missouri – Federal Form 1040, Schedule E and Missouri 1040
  • Have royalty income in Missouri – Federal Form 1040, Schedule E and Missouri 1040
  • Operates a sole proprietorship in Missouri – Federal Form 1040, Schedule C and Missouri 1040
  • Operates a farm in Missouri – Federal Form 1040, Schedule F and Missouri 1040

How do I receive and use my NAP tax credits?

A business or an individual with business income can receive Missouri state tax credits (not a deduction) equal to 50% of a contribution designated to the Delta Gamma Center Capital Campaign. For example, a gift of $10,000 to the Capital Campaign will receive a Missouri state tax credit of $5,000. This credit is in addition to the usual federal and state charitable deductions.

The process is very simple: First, make an eligible contribution to the Delta Gamma Center’s Capital Campaign. You then complete and return a notarized tax credit application form, provided by the Delta Gamma Center. The Missouri Department of Economic Development will issue NAP Tax Credits to you, which can be filed with your Missouri business income tax return. The tax credits are applied to your total tax liability incurred for that tax period.

A donor may receive no more than $250,000 in NAP tax credits in one tax year for contributions made to one or more NAP approved projects. The contributor has the tax year the contribution was given and five succeeding tax periods in which to use the credits, if the donor does not have enough tax liability in the tax year the contribution is made.

What size of contribution is required to take advantage of the NAP Tax Credits?

The minimum donation to take advantage of the tax credits is $1,000.

Contribution Examples:

These are examples ONLY. Should you have specific tax questions and to determine how the NAP Tax Credits specifically apply to you, please consult your accountant or tax advisor.

Example 1: Calculated based on 28% tax bracket

Donation Amount	$1,000	$2,500	$5,000	$10,000
Missouri Tax Credit (50% of gift)	500	1250	2500	5000
Federal Income Tax Deduction (28%)	280	700	1400	2800
State Income Tax Deduction (6%)	60	150	300	600
Total Savings	840	2100	4200	8400
Your out-of-pocket cost (estimated)	$160	$400	$800	$1600
Total Benefit to DGC	$1000	$2500	$5000	$10000

Example 2: Calculated based on 35% tax bracket

Donation Amount	$1,000	$2,500	$5,000	$10,000
Missouri Tax Credit (50% of gift)	$500	$1250	$2500	$5000
Federal Income Tax Deduction (35%)	$350	$875	$1750	$3500
State Income Tax Deduction (6%)	$60	$150	$300	$600
Total Savings	$910	$2275	$4550	$9100
Your out-of-pocket cost (estimated)	$90	$225	$450	$900
Total Benefit to DGC	$1000	$2500	$5000	$10000