Legacy Foundation offers assistance with tax credit applications

Legacy Foundation is assisting Lake County nonprofit organizations with the Neighborhood Assistance Program application process. Legacy can help an organization apply for NAP tax credits, and give donors even more incentive to make a contribution.

Many nonprofits face similar challenges when providing services to a low-income population: increasing needs, declining funding, and old or overused facilities. These challenges can stand in the way of a nonprofit’s ability to pursue its mission and effectively care for its clients, according to the foundation.

The goal of the NAP program is to provide citizens and businesses in Indiana with an incentive to contribute to nonprofit organizations. Additionally, the credits serve as a way to encourage community services that improve the standard of living and quality of life for Indiana residents.

NAP is established by Indiana State Code 6-3.1-9, and offers up to $2.5 million annually in tax credits to not-for-profit organizations that can use the credits as motivation for donors. Programs centered on neighborhood-based services in economically disadvantaged areas can use the credits to leverage more donations from individuals and businesses.

Eligible programs include: counseling, emergency assistance, medical care, recreational facilities, housing, economic development assistance, crime prevention, education, job training, and neighborhood assistance.

Tax credits are distributed to donors at 50 percent of the contribution amount, and are subtracted from the donor’s state income tax liability. In order for a donor to receive the tax deduction, the individual’s annual contributions must total at least $100 and may not exceed $50,000.

Online applications are due by 5 p.m. March 29.

For assistance in filling out an NAP application, contact Legacy Foundation at legacy@legacyfdn.org or (219) 736-1880. To view an application webinar or get more details about the NAP program, visit the Indiana Housing & Community Development Authority website at http://www.in.gov/ihcda/2526.htm.