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NAP credits offer tax savings to individuals and corporations

Officials at Dallas L. Winchester Senior Center recently announced that the Indiana Housing and Community Development Authority (IHCDA) awarded $15,505 in Neighborhood Assistance Program (NAP) tax credits to the Center, one of 217 Indiana nonprofit organizations selected in the State for participation in the program. 

NAP Tax Credits may be awarded to individuals or corporations who donate a minimum of $100 (cash, check, credit card or stock). Donors receive half the amount of the gift as a credit on their Indiana Department of Revenue taxes. However, the entire amount of the gift is considered a charitable contribution.  For example, a gift of $1000 to Dallas L. Winchester Senior Center results in a $500 tax credit against State of Indiana taxes. Therefore, a gift of $1000 with $500 NAP credits costs the taxpayer the same as a $500 gift without NAP credits. In essence, the taxpayer is giving the amount paid to the State of Indiana to Dallas L. Winchester Senior Center, when they receive NAP credits.

“We are very grateful for these tax credits,” says Beverly Ferry, CEO of Living Well in Wabash County CoA, Inc., the agency that operates the Senior Center. “NAP credits provide a win-win for the Center and the donor.”

According to Ferry, recent funding changes and challenges have become threats to the basic services offered by Living Well in Wabash County CoA, Inc. While the actual Senior Center does not receive State or Federal funds, there is a trickledown effect on the Senior Center.  “Regardless of the reasons for cutbacks, what this means is the possibility of losing some of the life-sustaining services people of all ages depend on such as food, transportation, nutrition, and resources,” she said.

We depend on donations to continue programs and services that reach more than 8,000 Wabash County seniors each year,” added Ferry. “Our senior population is growing, which means donations are needed more than ever. The NAP credits help meet this need.”

According to Ferry, seniors benefit from services offered at the Senior Center such as nutrition, exercise, lifelong learning, health insurance counseling, legal services and from the social interaction which combats loneliness—one of the primary threats facing older adults. When asked, the majority of seniors using the Senior Center cite fellowship with peers as the best reason to participate.

To purchase NAP credit from the Senior Center, please contact Maggie Wimberly at 260-563-4475. Credits are sold on a first-come, first-serve basis.

The Neighborhood Assistance Program (NAP) offers $2.5 million in tax credits annually for distribution by not-for-profit corporations. Organizations use NAP tax credits as an incentive to help them leverage more contributions from individuals and businesses for certain neighborhood-based programs and projects.

Eligible projects include affordable housing, counseling, child-care, educational assistance, emergency assistance, job training, medical care, recreational facilities, downtown rehabilitation and neighborhood commercial revitalization. All projects must benefit economically disadvantaged areas and/or persons.

The NAP program follows the state fiscal year from July 1 to June 30. The maximum tax credit award per organization per fiscal year is $40,000.00. Tax credits are distributed to donors at 50 percent of the contribution amount and are subtracted from a donor's state income tax liability. Indiana Code 6-3.1-9 established the NAP program

All activities and services of this program must be provided without regard to race, age, color, religion, sex, disability, nationality, ancestry nor status as a Veteran.

Posted on 2013 Aug 06