Volunteers working in warehouse

Neighborhood Investment Program

NIP Background

The Neighborhood Investment Program (NIP) is a tax credit program of $3 million each year, which allows 501(c)3 designated charitable organizations to apply for tax credit vouchers, which began in 1996 with $2 million. When awarded, the organization can distribute the vouchers to business and individuals who contribute a minimum of $500 to organizations, receiving up to 50% in tax credit, allowing the donor or corporation to reduce their West Virginia tax liability no more than 50%. The organizations pay a 3% fee on the donation, which offsets the administrative costs of NIP. During this time, approximately 24,500 donations from individuals and businesses have been received.

Benefits of NIP

There are 15,883 non-profits in West Virginia and we assist 200 of them each year with NIP credits, which has leveraged almost $88 million in donations since inception.

Funding for NIP

Amount: $3 million annually

Source of Funds: State of West Virginia

Funding Cycle: July 1 to June 30

Authorizing Legislation/Statute: 11-13J – Senate Bill 293

Eligible Applicants for NIP

Non-profit organizations apply annually to the West Virginia Development Office (WVDO). The applicant must be registered with the Secretary of State as a 501(c)3, have a letter from the IRS stating they are non-profit, serve citizens in the state of West Virginia, have a local board, submit various financial documentation and attend a mandatory workshop to apply by June 30th each year.
Projects generally eligible for program participation include but are not limited to the following:

  • Health clinics
  • Homeless shelters
  • Educational programs
  • Housing programs
  • Preservation/revitalization activities
  • Domestic violence shelters
  • Children's shelters
  • Meal delivery programs
  • Senior citizens' centers
  • Community foundations
  • Scholarship programs
  • Hospice care
  • Transportation programs
  • Day care centers
  • Counseling services
  • Services for the disabled

Eligible Applications
Tax credit vouchers are awarded to organizations that are designated as 501(c)3 by the IRS and registered with the West Virginia Secretary of State's office as charitable organizations. Preference will be given to organizations that:

  • Offer emergency assistance
  • Are community based
  • Are direct needs
  • Serve highly distressed neighborhoods or communities
  • Serve primarily low-income individuals
  • Collaborate with other organizations
  • Are novel, creative or unique in approach
  • Have a history of maintaining low administrative costs
  • Demonstrate the ability to deliver the proposed services
  • Demonstrate a strong need for the proposed services