White Paper - West Virginia Nonprofit Association

Collaborating to Advance the WV Neighborhood Investment Program’s Continued Impact
Philanthropy West Virginia and the WV Nonprofit Association, collectively representing over 300 foundations, giving programs, and
nonprofit organizations serving West Virginia, have adopted renewal of the WV Neighborhood Investment Program in the 2016 WV
Legislative Session as a priority. In reviewing our research and assessments, the renewal of the WV Neighborhood Investment Program
and the increase in the level of credits is critical for nonprofits to engage private investments, reduce burden on government, and
advance these organizations’ efforts to continue the recovery from the “Great Recession” and most recent economic impacts in our
Renewal of the WV Neighborhood Investment Program for another 5 years at the $3 million level with an increase of the program in State
FY Budget 2019 by $500,000 to be in total value of $3.5 million. We are working in collaboration with the WV Development Office to propose this
legislation. We believe this is of the utmost importance due to the following matters:
Local and statewide impact of
citizens and communities
(b) Recovering from the “Great
Increases private giving from
low and middle income
(d) Growing Demand to use the
WV Neighborhood Investment
Engaging our State’s Present
Transfer of Wealth
The private donations leveraged through the WV Neighborhood Investment
Program benefited over 600,000 West Virginians through programs, organizations,
and projects serving all 55 counties. The WV Neighborhood Investment Program
in its most recent year leveraged nearly 225% return of the value of the $3 million in
credit with nearly $7 million in private donations thus reducing burden on
As of 2015, the reported collective giving of West Virginia’s citizens via itemized
charitable deduction had declined from the previous year by more than $10 Million.
The figures still have not recovered from the 2008-year, and this was a tremendous
set back. The Neighborhood Investment Program tax credits help nonprofits
leverage giving from all income levels during this time of significant challenges. In
the 2015 FY, the program leveraged nearly $7 million in private gifts resulting in a
225% return on the state’s investment.
Nearly 60% (1,200 out of the 2,100) of the 2013 Tax Year individual donors
through the program are middle to low-income households. The Neighborhood
Investment Program provides the opportunity for low and middle-income
households to give and/or double their gift. This program helps leverage local
investment thus diversifying opportunities for communities to grow stronger and
gain private giving creating good sustainable business practices for nonprofits.
Annually, the requests for the Neighborhood Investment Program are at least three
times the available amount. As an example, Philanthropy WV and the WVNPA
polled their applicable nonprofits and community foundation members who
collectively shared they could consume at least $4,000,000 in credit annually. This
demonstrates that hundreds of thousands of charitable dollars from private citizens
are not being engaged for the benefit of low-income citizens and critical community
needs that are not met by other sources of funding. An increase could be added to
the legislation to take effect in years 3 or 4 of the re-authorization cycle noting that
is when improvements could be taking place by the state restoring its financial
position and tax income.
Philanthropy WV, thanks to the support of several community foundations,
economic development authorities, and the WV Development Office’s Flex-EGrant program, has completed transfer of wealth assessments for 33 of WV’s 55
counties. The projection is that the immediate transfer of wealth (the current ten
years) is over $28 Billion of which it is critical that we engage at least 5% for local
philanthropy, and the Neighborhood Investment Program is key in making that
possible. This is a way to engage private wealth that grows our state’s base of
resources and diversifies opportunities for nonprofits and community growth.
www.philanthropywv.org or www.wvnpa.org
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