tax planning

Neighborhood Assistance Program (NAP) Tax Credits

Increase the Power of your Investment in Promoting, Protecting and Providing Quality Mental Health Services with Neighborhood Assistance Program (NAP) Tax Credits! Places for People is pleased to announce it has NAP Tax Credits to offer our donors who make gifts of $1,000 or more. Please review the information below for eligibility guidelines and for an example of how the deduction works.

Here's an example of how it might work on your Missouri tax return:		Eligibility Requirements: Banks/Other Financial Institutions Corporations Indviduals Who: operate a sole proprietorship or operate a farm in Missouri have rental property receive royalty or honorarium income Insurance companies Limited liability companies (and their individual members) Partnerships (and their individual partners) S-corporations (and their individual shareholders)

Gift amount:	$5,000
50% NAP tax credit:	$2,500
Federal Itemized Deduction:	$1,750
6% Missouri Itemized Deduction:	$300

*ACTUAL COST OF CONTRIBUTION	$450

Missouri NAP tax credits can be taken in the tax year the donation is made or carried over the next five succeeding tax years!


*This is an example only. Actual tax savings may vary substantially. Please consult with your accountant.

Tax Deductions and Assessing the Value of Your Donation

Places for People is a 501(c)(3) qualified charitable organization. You can download a copy of Places for People's IRS Form 990. Please check with your tax professional regarding tax deductibility of your donations. For help with calculating the value of your in-kind donation, visit www.irs.gov/publications, and search for publication 561: "Determining the Value of Donated Property."

IRS Rules for Clothing and Household Items

To be deductible, clothing and household items donated to charity after Aug. 17, 2006, must be in good used condition or better. However, a taxpayer may claim a deduction of more than $500 for any single item, regardless of its condition, if the taxpayer includes a qualified appraisal of the item with the return. Household items include furniture, furnishings, electronics, appliances, and linens.

IRS Guidelines for Monetary Donations

To deduct any charitable donation of money, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. A bank record includes canceled checks, bank or credit union statements and credit card statements. Bank or credit union statements should show the name of the charity and the date and amount paid. Credit card statements should show the name of the charity and the transaction posting date. Donations of money include those made in cash or by check, electronic funds transfer, credit card, and payroll deduction. Prior law allowed taxpayers to back up their donations of money with personal bank registers, diaries or notes made around the time of the donation. Those types of records are no longer sufficient.

Donation Confirmation / Request a Receipt

Places for People provides all donors with a letter acknowledging their contribution for tax purposes. In January of each year, PfP will send each donor an annual summary of gifts for the previous calendar year.

If you need any further assistance, please contact the Development Office at 314-535-2310.