Virginia State Income Tax Credit
Your contribution to VHCF may be eligible for Virginia’s Neighborhood Assistance Program (NAP). NAP offers Virginia state income tax credits to individuals and eligible donors of qualified, participating organizations. VHCF participates in the NAP program.
Eligible corporations and individuals making charitable contributions to VHCF may receive tax credits valued at 40% of their donation (see criteria below)
| Donor Type | Donation Type | Minimum Eligible Donation | Value of Tax credit (40% of donation) | Maximum Donation Eligible for Tax Credit | Maximum Tax credit per taxable year |
|---|---|---|---|---|---|
| Individual | Cash only | $500 | $200 | $125,000 | $50,000 |
| Corporation | Cash * | $1000 | $400 | $437,500 | $175,000 |
Please note that:
- Non-cash business donations (stock, merchandise, real estate, leased space, certain professional services) must be valued in accordance with NAP and IRS standards.
- The value of tax credits is computed based on 40% of all donations (up to maximum) received between either July 1 through December 30 OR January 1 through June 30 of each calendar year.
- Individual donors are no longer restricted from claiming a Federal deduction for donations for which they have received a Virginia State income tax credit.
- In combination with Federal Income Tax Donations, NAP tax credits bring an estimated return of approximately $0.65 for every dollar donated by business donors.
Tax Credit Application Process
1) The Virginia Health Care Foundation (VHCF) receives your donation. The Eligible Tax Credit is valued at 40% of the donation subject to the following criteria:
- Individual Donor – $500 minimum cash donation
- Maximum tax credit/married couple = $50,000
- Business Donor – $1,000 minimum donation
- Maximum tax credit = $175,000
2) VHCF sends the Contribution Notification Form (CNF) to the donor
3) The donor completes the CNF and returns the completed original to VHCF
4) VHCF certifies the CNF and submits it to the Virginia Department of Social Services for review and approval
5) The donor receives Tax Credit Certificate by mail from DSS (30-45 days)
Questions about the tax credit? Contact VHCF’s Director of Fund Development & Communications, Stacie Birchett, at 804/828-5804 (Stacie@vhcf.org).