NAP Tax Credit Donation

The Salvation Army, Midland Division, has been awarded Neighborhood Assistance Program tax credits. This highly competitive grant honors Salvation Army services that increase economic benefits to our community. Your individual or business charitable gift or in-kind donation may cost you only 26 cents on the dollar! You may take off the top of your Missouri state tax liability 50% of the amount of your Salvation Army gift. Then you may take a charitable deduction off your federal taxes without regard for your 50% credit from the state of Missouri!

For more than 34 years, the Missouri Department of Economic Development has offered Neighborhood Assistance Program (NAP) tax credits through a rigorous and competitive awards process. The program was created to assist residents and communities in improving quality of life and to stimulate economic growth. Millions of dollars have been redirected to charitable organizations through this well-established program.

• As outlined in the application, you must have a Missouri state tax liability through a business or eligible entity.
• Your donation may be in cash, check, credit card, stock, or in-kind goods and services you provide during your course of business. In-kind gifts are valued based on your actual cost.
• You fill out a simple one-page form that states the amount of your gift, and against the taxes, you would like the credit to be taken, i.e., business, individual, or other eligible state tax liability.

• The form is sent to our headquarters and then forwarded to the state for approval stating The Salvation Army received your gift as described. You then receive an approval letter directly from the state.
• On your state tax form, there will be a line for you to subtract 50% of your gift from the top of your tax liability. You may do this during your current tax year or over the next one to five years.
• You claim the entire gift as a charitable deduction from your federal taxes.

• Your state tax dollars remain in your community.
• You determine how your state tax dollars are used.
• Your donation leverages more charitable dollars for your cause. 

• There is no red tape. You fill out a one-page application that is returned to The Salvation Army, which administers the process with the state.
• When taken along with the federal deduction, the average gift costs about 26 cents on the dollar.

• Your accountant or tax attorney can determine the most beneficial donation amount for you, especially if you are timing a gift of stock. 
• Your tax credit can be taken over several years, allowing you to make a more significant donation over time. 
• Frequently asked questions and a complete listing of eligible business entities and taxes can be found on the Department of Economic Development website: https://ded.mo.gov/programs/community/neighborhood-assistance-program-nap.

• The donation may not be used to offset fundraising expenses or other unallowed expenses. 
• Tax credits are issued on a first-come, first-served basis. 
• Tax credits may be carried over to the next five succeeding tax periods.

NAP FACTS DOCUMENT

NAP Program Summary