Virginia Neighborhood Assistance Programs (NAPs) are non-profits who provide services primarily to impoverished people in the community with programs and services in education, job training, housing assistance, health care clinics, and community services.

The lists of charities which qualify as Neighborhood Assistance Programs are available by visiting the Virginia Department of Social Services at http://www.dss.virginia.gov/community/nap.cgi and the Virginia Department of Education at http://www.doe.virginia.gov/school_finance/neighborhood_assistance_act/index.shtml

Tax credits are available to individuals and married couples donating cash or marketable securities directly to approved NAP organizations. The minimum donation by an individual or married couple is $500, or $616 by a business. The donor receives a tax credit valued at 65 percent of the total donation amount.

To receive tax credits for your donation, first contact the charitable organization and determine if it has any remaining tax credits to allocate to your gift. If tax credits are still available, fill out the Contribution Notification Form and send it to the organization. The charity will orchestrate the transfer of the tax credits to you. After submitting the paperwork, you will receive a tax credit certificate. At tax time, attach the certificate to your return.

The Department of Social Services and the Department of Education manage the transfer of the credits. Each qualifying charity is assigned a set number of credits annually. Your donation might not receive a credit if the charity has already given away its share. But if you receive more tax credits than you need this year, you can carry them forward to future years.

For further information, see our article on the advantages of Virginia Neighborhood Assistance Programs.