The Eastern West Virginia Community Foundation is offering West Virginia residents NIP Tax Credits for qualifying gifts made to the Foundation. Thanks to the West Virginia Development Office Neighborhood Investment Program (NIP), West Virginia residents can actually reduce their state tax liability by up to 50%. A $1,000 gift to the Community Foundation translates into an actual $500 out of pocket expense.
“Tax credits can help donors make sizable gifts that will benefit favorite charities this year, and forever,” says Michael Whalton, executive director of the Eastern West Virginia Community Foundation. The Community Foundation works with local donors to build permanent community endowment. Funds are invested and the gains produce grants and scholarships that benefit Eastern West Virginia. The minimum gift to qualify for NIP tax credits is $500 and the maximum is $4,000. A $500 contribution earns $250 in tax credits and other gifts up to the maximum also earn a 50% tax credit based on the amount of the donation. Contributions made to the Community Foundation for NIP tax credits will be allocated as follows: 3% of the gift goes back to the West Virginia Development Office to cover their cost of implementing the program, 30% of the contribution is added to the Community Foundation’s Annual Fund to provide funding for programs this year, and the remaining 67% is added to one of the qualifying funds here at the Community Foundation.
A number of existing funds held by the Community Foundation qualify a donor’s gift for the credit. The Joan Roach Volunteer Fund for the Needy, Eastern Panhandle CARE Fund, Housing Action Fund, and the Mini Grants to Teachers Fund are all eligible to receive NIP gifts. Many nonprofit organizations in the region, including CCAP Loaves and Fishes, CASA of the Eastern Panhandle, Jefferson County Community Ministries, Camp Frame 4-H, Boys and Girls Club of the Eastern Panhandle, Healthy Smiles Dental Clinic, Shepherdstown Daycare Center, Junior Mentoring Program (JUMP), Shenandoah Women’s Center, and Community Networks, Inc. – Bethany House have endowed funds which can be supported by the Neighborhood Investment Program. Additionally, the unrestricted Community Impact Funds in Jefferson, Berkeley, Morgan, Hampshire and Hardy counties all qualify as well.
Individuals or businesses interested in making an NIP eligible donation can call (304) 264-0353 to reserve credits and discuss how they would like their gift to be used to benefit local charities. The West Virginia Legislature sets aside $3 million annually in NIP tax credits. Donors may use the credits to reduce liability for West Virginia Personal Income Tax or Corporate Net Income Tax. Taxpayers who plan to itemized their deductions on Federal Tax returns should download and carefully read this DOCUMENT prepared by Philanthropy West Virginia.
The Eastern West Virginia Community Foundation was founded in 1995 and serves Jefferson, Berkeley, Morgan, Hampshire and Hardy counties. It distributes nearly $1 million in annual grants and scholarships to local nonprofit organizations and college-bound students. The Foundation also provides financial stewardship for 245 endowment funds and holds over $23 million in assets. For information about the Community Foundation visit www.EWVCF.org or call 304-264-0353.