NAP Donation & Credits
Lafayette Urban Ministry is now offering Neighborhood Assistance Program tax credits, a way for you to support LUM and receive limited Indiana state tax credits. The process is simple — make a donation and complete the form. Your tax credits will be available upon receipt of your donation and completed NAP Donor Contribution Form, and will be awarded when you file your Indiana state income taxes. Your donation will support LUM Homeless Services, as required by NAP guidelines.
DIRECTIONS FOR DONORS
- DONATE. Make a donation in any of the eligible contribution formats to Lafayette Urban Ministry by December 31, while credits are still available. Donations can be made to Lafayette Urban Ministry by check (add “NAP Donation” to the memo section) or credit card, in person or online by clicking the button below.
- COMPLETE THE FORM. Complete the Donor Contribution Form for the records of Lafayette Urban Ministry (the NAP organization) and keep a copy for your own records. The form is available in the LUM Office or by clicking the button below.
- PERSONAL or BUSINESS. If the credit is for your personal taxes, then the donation must be in your name and come from your personal account. If the donor wants the donation to go on their business taxes then the donation must be in the business name.
- FILE YOUR TAXES. Claim the donation on Schedule 6 using code 828. No form is required to submit. Tax credits are distributed to donors at 50% of the contribution amount and are subtracted from a donor’s state income tax liability. If IDOR rejects your credit, Lafayette Urban Ministry (the NAP organization) will work with you to ensure all information was reported correctly.
Please see below for more detailed information about NAP Tax Credit Donations.
WHAT IS NAP?
The Neighborhood Assistance Program (NAP), established by Indiana Code 6-3.1-9, offers $2.5 million in tax credits annually for distribution by not-for-profit organizations, up to $25,000 per organization. Organizations use NAP tax credits as an incentive to help them leverage additional contributions from individuals and businesses for programs and services benefiting economically disadvantaged neighborhoods.
HOW DO THE CREDITS WORK?
Organizations, corporations, individuals and Donor Advised Funds are all eligible to make a contribution* to a NAP agency. When they do, they will receive a tax credit on their Indiana taxes worth 50% of their contribution.
Example: If an individual contributes $1,000 they will receive a $500 Indiana tax credit.
The minimum NAP Tax Credit Donation allowed is $100 for a $50 tax credit and the maximum NAP Tax Credit Donation allowed is $50,000 for a $25,000 tax credit. That maximum is for all donations combined, even is a donor contributes to multiple NAP organizations. The donations are reported by the nonprofit organization to the Indiana Housing and Community Development Authority (IHCDA), which manages the NAP program. IHCDA then reports donor information to the Indiana Department of Revenue (IDOR) which provides the credit for the donor’s state tax liability. NAP Tax Credits must be claimed in the year that the donation was made and cannot be rolled over to the next tax year.
Example: If an individual donates on February 1, 2023, the credits must be reported on their 2023 taxes, not their 2022 taxes.
WHAT ARE ELIGIBLE CONTRIBUTIONS?
- Liquidated Stock
- In-kind Building Materials***
- Contributions from IRAs
- Credit Card
- Donor Advised Funds donations**
*The donated property must be related to the actual approved project of the NAP Organization.
**Refer to LUM, the NAP organization, to determine if contribution qualifies.
***The donated materials must be related to an actual approved project of LUM, the NAP Organization.