Neighborhood Assistance Neighborhood Assistance Program (NAP)Program (NAP)

Application WorkshopApplication Workshop

Fiscal Year 2007-2008Fiscal Year 2007-2008

Agenda Community Development Staff What is NAP? Program Trends Application Package Application Forms

Community Development Staff Cecelia Johnson-Powell – Community

Development Supervisor 8 Community Development Representatives Sara Cobb & Diane Cook – Community

Development Coordinators

What is NAP? Organizations use NAP tax credits to help

them leverage more/larger donations NAP gives the donor incentive to

contribute to an organization, i.e. tax credit for exactly 50% of the donation amount

Organizations apply to IHCDA for NAP tax credits

Goals of NAP Provide organizations with a tool to help them

increase charitable contributions, build their donor base, and achieve self-sufficiency.

Provide Indiana citizens & businesses an incentive to contribute to not-for-profit corporations.

Serve as a creative way to improve the standard of living & quality of life for all Hoosiers.

Be flexible enough to respond to the changing needs throughout the State of Indiana.

Award Amounts Maximum Award Amount = $50,000 in tax

credits / $100,000 leveraged NAP funds Minimum Award Amount = $1,000 in tax

credits / $2,000 leveraged NAP funds Award Term = 24 Months

Eligible Activities Affordable Housing

Construction or Rehabilitation

Child Care Services Counseling Services Downtown Revitalization Educational Assistance

Emergency Food Assistance

Emergency Shelter Housing

Job Training Medical Care Services Recreational Facility Transportation Services

Eligible Activities Religious Organizations

May not engage in inherently religious activities as part of NAP assistance

May not discriminate against a program beneficiary or prospective beneficiary on the basis of religious belief

Eligible Costs Salaries and benefits of an individual

(employee of the applicant) that provides direct service to beneficiaries

Basic construction materials Skilled labor for construction projects Stoves and refrigerators

Ineligible Costs Administration Costs: Administrative

Assistant, Office Supplies, Rent, Utilities

Complimentary / Non-Stationary Building Materials: Appliances, Furniture, Home Accessories, Landscaping, Driveways

NAP Tax Credit Process Donor and organization complete an NC-10

form Contributions are reported to IHCDA

quarterly, then processed through the Indiana Department of Revenue (IDOR) Organizations have a quarterly spending rate.

NAP Tax Credit Process IDOR sends each donor an NC-20 form to

use when filing taxes NAP tax credits are subtracted from the

donor’s state income tax liability

NAP Program Trends 2006-2007 Application Statistics

$2,500,000 tax credits awarded annually 136 applications received 93 funded

33 @ 100% funding rate 28 @ 75% funding rate 26 @ 50% funding rate 6 @ 32.37% funding rate

Projects may encompass multiple activities. Therefore, the calculations shown above may count an organization more than one time.

NAP Program TrendsActivities Funded 2006-2007

10

109

11

7

24

6

61

5

4

Counseling - 24

Child Care - 10

Medical Care - 10

Affordable Housing - 9

Emergency Food Assistance - 11

Emergency Shelter - 7

Job Training - 4

Recreational Facility - 5

Transportation - 1

Educational Assistance - 6

Neighborhood Org. Rehab - 6

Activity and Number Funded

Application Process 1. Threshold and Completeness

All required exhibits and attachments are submitted on time to IHCDA

Meets list of items under Threshold Criteria If an application fails threshold, it will not be

awarded NAP tax credits.2. Allocation

Applications that pass the completeness and threshold reviews are then allocated a tax credit amount according to IHCDA’s published allocation method.

Completeness Do not put your application in a binder.

Use an appropriately sized binder clip. Please use tabs for all attachments. Applications must be received by 5 PM

(Indianapolis time) on the published due date - NO EXCEPTIONS Postmarks are not accepted.

Completeness cont. Submit:

1 original w/ tabbed attachments 1 completed electronic copy of the final

application forms via CD-ROM or diskette.

Threshold Criteria To be considered for a tax credit allocation

award, an applicant must meet all of the criteria listed. Applications that fail to meet any of these criteria will not be considered for funding. All required supporting documentation must be included in the application.

The applicant must be a 501 (c) 3 not-for-profit corporation.

Threshold Criteria cont. The proposed activity must meet all the

requirements as instructed in the Neighborhood Assistance Program (NAP) Application.

Threshold Criteria cont. The applicant must provide community services in

an economically disadvantaged area by meeting at least one (1) of the following four (4) conditions: Enterprise Zone Serves 100% beneficiaries at 50% or less AMI Meets 3 of 4 Economic Factors of Disadvantaged Area Activity is located in or improving conditions in

Designated Area     

Threshold Criteria cont. Applicants provide a budget outlining the

uses of funds for the project. Applicants, who received a NAP tax credit

allocation in the previous three years, must have utilized/allocated a percentage of their tax credit award to meet threshold.  

Allocation Method Tax Credit Allocation based on four

factors: Applicant’s receipt of NAP tax credits in the

previous three years Applicants who pass threshold will receive a

tax credit allocation. Total Amount of Tax Credits Requested from

applications that meet threshold Total Amount of Tax Credits Available

Allocation Method The formula for calculating the award amount for

each eligible applicant is as follows: Total Amount of Tax Credits Available divided by

Total Amount of Eligible Tax Credits Requested, which provides the Tax Credit Allocation Percentage.

The Tax Credit Allocation Percentage is multiplied by the Eligible Applicant’s Tax Credit Request.

NAP TimelineApplication Workshops February 2007

Application Due Date March 23, 2007

Application Receipt Confirmation Number

March 30, 2007

Award Announcements May 24, 2007

Award Workshops June 2007

Application Forms Application Information Economic Disadvantage Financing Organizational Capacity Primary Activity Terms, Obligations & Conditions Drug Free Workplace