You Deserve a Break!!
DONATE TO HABITAT'S "HOME OF OUR OWN" CAMPAIGN AND THROUGH MO NAP TAX CREDITS, RECEIVE 50% OF YOUR TAX DEDUCTIBLE DONATION AS A DIRECT TAX CREDIT AGAINST YOUR MISSOURI INCOME TAX!
The Missouri Neighborhood Assistance Program (NAP) is a State-sponsored program that offers tax credits to those who make charitable donations to organizations that make a positive contribution to the economic welfare of the state. Business donors, including "S" corporations, shareholders, or partnerships, are eligible to receive tax credits. Donors use the tax credits as vouchers when their taxes are due.
How the Program Works
Rather than funding a project by giving a grant, the State grants tax credits to "partially reimburse" eligible donors who themselves fund the project. In effect, this enables donors to finance local projects with money they otherwise would owe on their Missouri taxes. The credit equals 50% of the value of most contributions.
Steps in the Process
- After receiving your donation, Habitat will deposit your check.
- After your check clears the bank, you will send Habitat a copy of the front and back of the canceled check and your notarized NAP application.
- Habitat will send the copy of your application and proof of canceled check to the State of Missouri for processing.
- It will take a few weeks for the clearance. You will receive a notice from the State approving your donation and tax credits.
Donor Eligibility Requirements
The Missouri Department of Economic Development operates the NAP program. Donor eligibility is determined by business affiliation. The program is available to:
- Individuals who either: a) operate a sole proprietorship in Missouri, or b) operate a farm in Missouri, or c) have rental property in Missouri
- Corporations (including S-Corporations and their individual shareholders)
- Insurance companies
- Express companies
- Banks and other financial institutions
- Partnerships (and their individual partners)
- Limited liability companies (and their individual members)
How Tax Credits Work
First, as with any general charitable donation, the donor is able to take a federal tax deduction. But in addition to the federal deduction, by using the NAP tax credit, the donor also is able to claim one half (50%) of the donation as a state tax credit. |
| The following is an illustration of benefits for an individual or family in the 35% tax bracket, making a $1,000 donation*: |
| |
Tax Rate
|
Tax Savings
|
| Federal Tax Deduction |
35%
|
$350
|
| Missouri Tax Deduction |
6%
|
$60
|
| Missouri NAP Credit |
50%
|
$500
|
| Lost Benefit From State Tax Deduction |
|
($175)
|
| Total Tax Savings |
|
$735
|
| Donation |
|
$1000
|
| Tax Savings |
|
-$735
|
| After Tax Cost of Contribution |
|
$265
|
In summary, an individual in the highest tax bracket will have an after tax cost of 26% of the contribution made. Think of the difference that donation will make in the lives of so many people. Call our Development office at 314 371-0400, extension 17 and reserve your tax credits today! Please check with your accountant to determine how this program will affect your personal tax situation.
(*This example assumes highest federal tax bracket, and no alternative minimum tax.)
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