Neighborhood Assistance Program Tax Credits

Neighborhood Assistance Program (NAP) Tax Credits

How this program helps people

The Neighborhood Assistance Act Tax Credit (NAP), passed in 1981 by the Virginia General Assembly, is designed to encourage businesses and individuals to contribute directly to an approved 501(c) (3) or 501(c) (4) nonprofit organization that provides services to low-income persons.

A donor who contributes to an approved NAP organization may qualify to receive a tax credit for 65 percent of the donation value.

Contributions from businesses foster partnerships between private and public sector agencies and may take the form of: cash, merchandise, health care services, stock, real estate, professional services, contracting services, mediation services, or rent/lease of the participating nonprofits' facilities. Individuals may qualify for a tax credit for a donation of cash or marketable securities.

Data Notes

• Starting in State Fiscal Year (SFY) 2010, NAP funding was split between the Department of Education (DOE) and Department of Social Services (DSS).
• In SFY 2013, NAP received an increase in federal funding from $11.9 million to $15 million, of which DSS administers $7 million. The chart and table includes total credits issued by DSS.

Data Sources

• Division of Community and Volunteer Services - Office of Community Services Program
• Neighborhood Assistance Program (NAP) database