Cultivating Communities
KENZIE DYE
West Virginia ’ s Neighborhood Investment Program
The Neighborhood Investment Program ( NIP ) is a critical lifeline for nonprofits across West Virginia , allowing them to amplify their impact on local communities . NIP leverages private donations to fulfill public needs by offering state tax credits .
“ Contributors can receive up to 50 % of the donated amount as a tax credit against their West Virginia state taxes , which makes giving more attractive and affordable ,” Shanna Gray , state director of West Virginia CASA Association , Inc ., says .
Tres Ross , executive director of The Ross Foundation , offers an insightful perspective on the program , emphasizing its dual benefits for donors and beneficiaries . NIP not only encourages charitable giving but also ensures that nonprofits receive the necessary funds to support their causes , particularly those aimed at low-income communities .
The NIP is unique in it ’ s focus on addressing urgent community needs . Nonprofits can apply for NIP credits to support a range of initiatives , including emergency assistance , community-based services and projects that serve highly distressed neighborhoods .
“ The program allows nonprofits to make a greater impact for specific causes with the NIP credits they receive while offering tax benefits to the individuals or businesses that support them ,” Ross says .
Since its inception , the NIP has seen a growing demand from nonprofits seeking to leverage these credits . Initially , the program allocated $ 2 million , but as awareness and participation have increased , this amount has grown to $ 3 million . Despite this increase , the demand far outstrips supply ,
with recent estimates suggesting that $ 6 million would be needed to meet the current demand for NIP credits .
“ A smaller number of nonprofits applied for NIP credits in the early days , allowing more dollars to be allocated to specific organizations ,” says Ross . “ Now , the amount given to a specific nonprofit is much less due to higher demand .”
The NIP program also undergoes a rigorous renewal process to ensure its continued efficacy and alignment with community needs . Nonprofits must reapply yearly , with the renewal process involving the West Virginia Department of Economic Development and other stakeholders who review the program ’ s performance metrics , economic impact data , participation rates and feedback from donors and nonprofits . This systematic evaluation also involves raising awareness among elected officials about the program ’ s impact on local communities .
“ Elected officials in the House and Senate need to be made aware of the impact it has had for nonprofits and how the dollars support causes in local communities within their districts ,” Ross says .
Advocacy plays a crucial role in the sustainability of the NIP program .
“ It makes a strong case for a proven initiative that delivers positive social and economic impacts across West Virginia in a fiscally responsible manner ,” Gray says .
The Ross Foundation , though it does not directly benefit from the NIP , plays a pivotal role in advocacy , understanding the program ’ s value to nonprofits through collaborations with organizations like the West Virginia Nonprofit Association ( WVNPA ) and Philanthropy West Virginia .
Ensuring the program ’ s renewal and advocating for its expansion are essential steps toward fostering resilient and thriving communities across West Virginia . •
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WEST VIRGINIA EXECUTIVE