This year, Beckley Area Foundation, Inc. ranked #8 out of 212 applicants for the Neighborhood Investment Program (NIP), receiving the top award amount of $62,000.00. The Neighborhood Investment Program was established in 1997 by the West Virginia State Legislature to encourage charitable giving to local nonprofit organizations. It is administered by the WV Development Office.
The Beckley Area Foundation has participated in this program since its inception. The program allows 501-c-3 designated charitable organizations to apply for state tax credit vouchers. Organizations approved to participate can then distribute the vouchers to contributing businesses and individuals. By donating to an approved NIP organization, contributors can support their community and earn credits to reduce West Virginia personal income tax, business franchise tax or corporate net income tax.
BAF awards the credits to eligible donors on a first come, first served basis. Businesses and individuals who donate $500 or more to BAF, or any other participating charity, are eligible to receive 50 percent of the contributed amount in the form of state tax credits.
“The NIP has always been an excellent tool for community foundations to build endowments that will generate income to support the under-served populations of West Virginia. This year we recognize that the southern coalfields of our mountain state face unprecedented economic and social challenges. Thus, we want to offer NIP eligible donors the opportunity to select from a variety of programs we support that reach out to under-served communities, and address immediate needs with half of their gift being directly "passed-through" and the other half will be added to a permanent endowment that will generate additional income every year for the same purpose” stated BAF Executive Director, Dena Cushman.
BAF will also use current endowment income to address these same programs/organizations. The Foundation can offer the opportunity to address a wide diversity of programs without exclusion of a current pressing need, provide immediate support from both pass-through gifts and endowment income while building endowments for the future.
In addition to BAF, six other Raleigh County organizations received NIP state tax credits; Just for Kids, Hospice of Southern WV, West Virginia Professional Dance Company, United Way of Southern WV, New River Community and Technical College and Brian’s Safehouse. The Hinton Area Foundation, a community foundation serving Summers County, also received state tax credits to use for their Vision 20/20 campaign.
For additional information about making an NIP eligible gift, contact the Beckley Area Foundation at 304-253-3806 or email@example.com.
For the past three years, the Beckley Area Foundation has set aside a portion of its allocation of Neighborhood Investment Program WV state tax credits to reward donors who made donations to the Foundation’s special initiative called “Feeding Our Friends.” The program has become so popular that despite an increase in the number of credits BAF set aside for this purpose, all of the allocated tax credits were spoken for prior to the 2016 Thanksgiving and Christmas holiday season.
Donors were permitted to select the recipient feeding program for their donation from a list of those serving Raleigh County, each organization having been vetted by the Foundation. In January, 2017, BAF sent checks of $1,257 to the Salvation Army; $6,357 to Helping Hands Resource Center; $257 to Heart of God Food Ministries; $3,857 to the Carpenter’s Corner; $257 to Fishes and Loaves; $1,257 to Bread of Life; and $1,758 to The Shepherd’s Table for a total of $15,000 donated to area food providers.
Traditionally, many grants awarded through the Foundation’s annual Community Grant Program have covered the costs of durable goods that can be used over a multi-year period by local non-profit charitable organizations. However, BAF recognizes that the greatest need of area food banks is obtaining funds to purchase food. They also need the latitude to make purchases that fill in important gaps within food groups supplied from other sources. Their supplies may lack such items as fresh vegetables and fruit.
It is also obvious that current economic conditions within our service area have significantly increased the numbers of people being served by organizations supplying meals and non-perishable food items to those in need.
Following the guidelines of the WV State Development Office, the Beckley Area Foundation was able to award a state tax credit voucher in the amount of one half of the donors’ gifts to the BAF “Feeding Our Friends” initiative. The state requires that the donation be $500 or more. Individuals who contributed $500 received a voucher that will reduce their state taxes by $250; those who donated $1,000 received a voucher for $500. These vouchers can be used to reduce WV personal income tax, corporate net income tax or business franchise tax. The entire amount of the gift can be used as a charitable deduction on federal tax returns.
“The Board of Directors set aside $7,500 in WV state tax credits for this program,” commented Dena Cushman, the Foundation’s CFO. “It is important to realize that only a limited number of tax credits were allocated to BAF through a competitive application process. We had a finite number of credits which could be used for this pass-through donation program and a finite number to build permanent charitable endowments.”
“The Foundation will apply to participate in the 2017-2018 round of NIP, and we hope to be able to again offer this popular opportunity supporting area food providers during the fall of 2017.”
Contact the Beckley Area Foundation for further information by calling 304-253-3806 or email firstname.lastname@example.org.
West Virginia’s 10th Annual Spirit of Philanthropy Critical Impact Award Goes to theBeckley Area Foundation