NAP Donation Information

Making a Qualified Donation 

To qualify for tax credits, donations must go directly to a Neighborhood Assistance Program organization. 

• Donations must be given freely. 
• The donor cannot receive goods, services, repayment or other benefits in return. 
• Discounted sales, partial donations or bargain sales do not qualify for tax credits. 

Third-Party Payment Fees 

If a donation is made using a third-party payment service, the organization may choose how to handle the service fee. 

• The organization may pay the fee, or 
• The fee may be deducted from the donation amount 

If the fee is deducted, the tax credit form will show the net donation amount after the fee. 

Donations That Do Not Qualify 

The following donations are not eligible for tax credits: 

• Gifts from deferred charitable contribution plans 
• Donations made through donor-advised funds or giving funds 

Donation Value, Date and Required Documents 

Adjusting the Donation Amount

If a donor receives anything of value in return, the donation amount must be reduced. 

• The fair market value of goods or services received must be subtracted. 
• This rule applies to auction items and similar purchases. 

Example: 
A donor pays $3,600 for an item at a silent auction. 
The fair market value of the item is $3,000. 
Only $600 qualifies for tax credits. 

The organization should keep records that show: 

• The fair market value 
• The amount paid 
• The date the item was sold and paid for 

Rules for Cash and Tradable Stock Donations 

For donation types not listed here, see the Business Donors page. 

Cash Donations 

Submit the following with the Contribution Notification Form: 

• Copies of checks, credit card transactions or payroll deduction records 
• Credit Card Authorization Form, if applicable 

Tradable Stocks or Securities 

Submit a letter from the brokerage firm that includes: 

• Donor name 
• Name of the Neighborhood Assistance Program organization 
• Number of shares transferred 
• High and low price, or average price per share, on the transfer date 

How Value Is Set 

The value is based on the fair market value on the date of transfer. 

This is calculated by multiplying the number of shares by the average of the high and low prices, or the mean price per share. 

Donation Date 

The donation date is the day the stock is transferred from the donor’s account to the organization’s account.