The Eastern West Virginia Community Foundation has been approved to distribute $50,000 of West Virginia Neighborhood Investment Program (NIP) Tax Credits, which can be used to reduce tax liability on West Virginia State personal income taxes or corporate net income tax. NIP Tax Credits are much better than a tax deduction since tax credits directly reduce the tax owed.
Credit is given for 50% of the donation. For example, a $5,000 gift equals a $2,500 NIP Tax Credit. A credit may reduce the donor’s state tax liability by up to 50% in one year or be used over a total of five years. Since most contributions can also be claimed as a deduction on Federal Income Taxes it is recommended that donors speak with their financial advisors to determine the best way to make a charitable gift. Contributions of cash, appreciated stock, or certain Charitable IRA distributions are all options that a donor might consider.
There are some guidelines in order for each NIP gift to qualify. We ask that each gift:
•Be accompanied with a specific request for NIP Tax Credits;
•Be a minimum of $500 ($250 in tax credits) and maximum of $5,000 ($2,500 in tax credits), which may be increased if any NIP tax credits remain at the beginning of December;
•Be restricted, with 67% of the total donation to be added to one or more of the Community Foundation’s qualifying endowment funds, and 30% applied to the Community Foundation’s annual programs;
•Direct 3% of the total gift to the West Virginia Development Office in Charleston to help offset the cost of administering the NIP program.
•To take a tax credit this year, gifts must be received by December 31, but earlier contributions, especially if the gift consists of appreciated stock, are encouraged.
The Community Foundation holds many endowed funds that do the work supported by NIP Tax Credits and donors are encouraged to contribute to one of these endowments. Credits are limited and are awarded on a first-come, first-serve basis. Call Michael Whalton at 304-264-0353 or email [email protected] to discuss your charitable vision—and reserve NIP tax credits.
In order for a gift to meet West Virginia Neighborhood Investment Program tax credit criteria, donations must be made to address one or more of the following needs:
Support Community Services that provide medical services, day care, foster care, counseling, or recreation and arts programs for low-income children and families (below 125% of the federal poverty level).
Assist with housing, transportation, sheltered workshops, and food pantries serving the region’s at-risk population; or provide emergency shelter, food, water, clothing, and supplies for those in need.
Support educational opportunities such as providing scholarships to students from low-income families, awarding grants to teachers, and offering workshops to help nonprofit leaders build capacity and recruit volunteers.
Call 304-264-0353 to confirm if an existing fund in the Community Foundation qualifies, or to discuss establishing a new fund that will meet the requirements.
West Virginia residents may obtain a summary of financial documents and registration from the Eastern West Virginia Community Foundation, or, from the Secretary of State, State Capital, Charleston, WV, 25325. Registration with the State does not imply endorsement.