NAP Frequently Asked Questions

The Neighborhood Assistance Program encourages people and businesses to support nonprofit groups that serve communities across Virginia. In return, donors may receive state tax credits. 

Each year, the program offers $17 million in tax credits: 

• $8 million supports human services programs such as food, housing and health services. 

• $9 million supports education programs such as tutoring and school readiness. 

Approved nonprofit organizations may offer tax credits to donors. To participate, groups must show strong operations and a clear focus on serving people with low income or supporting students with disabilities. 

Organizations apply each year. The program year runs from July 1 through June 30. 

• Applications open by March 15. 

• Completed applications are due by the first business day in May. 

Forms and guidance are available on the Virginia Department of Social Services website during the application period. You can also request information by emailing nap@dss.virginia.gov. 

Tax credits may be available to: 

• Individuals 
• Businesses 
• Trusts 
• Health care professionals 
• Mediators 
• Pharmacists 
• Physician specialists 

Donations must meet program rules and be made to an approved organization. 

Businesses and trusts may qualify for tax credits when they donate at least $616. 

Tax credits may equal up to 65% of the donation. 

Example: 
A $616 donation may receive a $400.40 tax credit toward Virginia state taxes. 

Organizations may set higher minimum donation amounts. 

Types of Business Donations 

• Cash 
• Merchandise 
• Rent/Lease Facility 
• Professional Services 
• Pharmaceutical Services 
• Physician Specialist Services 
• Stock 
• Real Estate 
• Contracting Services 
• Health Care Services 
• Mediation Services 

Individuals may receive tax credits for cash or eligible stock donations. 

• Minimum donation: $500 
• Tax credit value: up to 65%

Example:
A $500 donation may receive a $325 tax credit to apply toward Virginia state income taxes.

Important to Know

While the program minimum is $500, each organization may set its own minimum donation amount for tax credit eligibility. 

Individuals may donate up to $125,000 each year for tax credits through this program. 

There is currently no maximum donation limit for businesses or trusts. 

Before donating: 

• Confirm that the organization has available tax credits. 
• Make the donation directly to the approved organization. 
• Donations must be voluntary. You cannot receive goods, services or payments in return. 

Discounted property, partial donations or bargain sales do not qualify. 

Each donor is responsible for understanding how tax credits affect their taxes. Consider speaking with a tax professional before making a donation. 

1. Contact the approved organization you want to support. 

2. Complete the Contribution Notification Form. 

3. Send the completed form to the organization. 

The organization will submit the form to the Virginia Department of Social Services for review. 

Review and approval may take up to eight weeks. 
Between December and June, processing may take up to 12 weeks. 

After approval, the organization will mail your tax credit certificate. 

The name listed on the tax credit certificate cannot be changed as NAP tax credits cannot be passed to someone else. 

Contact the NAP organization to request a copy of the tax certificate. 

Tax credits are reported on Schedule CR filed with the Virginia Department of Taxation (TAX). Businesses that pass income to owners must send Form PTE Virginia Pass-Through Credit Allocation and a copy of the tax credit certificate to the state tax office. All tax forms can be found on the TAX website, www.tax.virginia.gov. 

Do you have tax-related questions? Call (804) 786-2992. 

Tax credits are non-refundable; however, NAP tax credits that exceed the donor’s total Virginia State tax liability may be carried forward for up to five years. 

Please contact the Department of Taxation at (804) 786-2992 for additional assistance. 

Information can be found at: Neighborhood Assistance Act | Virginia Department of Education 

If you have questions or want more details, start by contacting the Neighborhood Assistance Program organization you plan to support. They can help you understand whether tax credits may be available. 

You can also review the Donor Fact Sheet under the Guidance and Procedures section for more information, or email us at nap@dss.virginia.gov for support.