Neighborhood Assistance Act Program Deadline Approaching

Last week the voted to appoint Finance Director James Finch as the liaison of the Neighborhood Assistance Act Program. Like charitable donations, which give people tax breaks, the Neighborhood Assistance Act gives businesses and corporations “credits” to use when filing taxes if they make a donation to a local non-profit.

According to Finch, this program run by the Connecticut Department of Revenue Services offers businesses and corporations in Connecticut an opportunity to potentially receive their contributions back in the form of a credit “dollar-for-dollar.” Finch explained, “Credits are superior to deductions. As a rule, tax credits are better than tax deductions as financial incentive.”

All Branford non-profits interested in benefiting from the services must fill out the attached application by this Friday, May 27 and return to James Finch. You can also find this application online.

Businesses interested in participating must fill out a separate application of donation intent by Oct. 1 and send to the DRS or give to Finch (also attached in PDF). These donations and credits will be applied to 2011 finances.

In 2010 these were participating non-profits and businesses in Branford:

Community Dining Room for Nutritional Support

$2,500

Harco Industries $1,000

Cintas Corporation $500

Russell Hall Company $250

James Blackstone Memorial Library for Enhancement of the Children's Department

$1,750

A few things to know about the program from the DRS:

• Business are give 100 percent credit for donations pertaining to energy conservation; compensation for most other donations to community organizations results in a 60 percent credit.
• A business is limited to receiving $75,000 in tax credit annually.
• A non-profit organization is limited to receiving $150,000 in contributions in the aggregate.
• The total charitable contributions of the contributing business must equal or exceed its prior year’s amount (unless the contribution is to an approved open space acquisition fund).
• The minimum contribution on which credit can be granted is $250.
• The program has a five million dollar cap, which, if exceeded, results in proration of approved donations.