Receive tax credits for your donation.
Support Northstar and receive state tax credits with the Education Improvement Scholarships Tax Credit Program (EISTCP) or Neighborhood Assistance Act Tax Credit Program for Education (NAP).
Your donation ensures Northstar’s ability to provide each student with an exceptional, customized education and career opportunities!
What are NAP and EISTCP?
The Virginia Department of Education (VDOE) administers two programs that allows businesses and individuals to receive state tax credits for supporting approved charities like Northstar.
- The Education Improvement Scholarships Tax Credit Program (EISTCP) in partnership with Virginia Foundation for Learning Disabilities Students (VFLDS) supports student scholarships.
- The Neighborhood Assistance Act Tax Credit Program (NAP) supports Northstar’s annual fund.
Each year, Northstar receives a limited amount of tax credits dependent upon the number of qualifying students enrolled.
While the tax credits available to you are very similar, the process to reserve credits is different. Please complete the below intent form or contact Northstar staff for more information to reserve tax credits.
What are the benefits of tax credits?
You can give a variety of donation types, including check, credit card, real estate, stock, and marketable securities. Donor advised funds are not eligible for the tax credit programs.
- Current law allows tax credits to be claimed for the taxable year of the donation, and for up to five successive years.
- Northstar allows NAP and EIS donors to take the maximum credit amount of 65%.
- In addition to a 65% state credit, individuals and businesses may also receive a deduction for a charitable contribution, and therefore achieve potential tax savings in two ways:
- Deductions against taxable income as a charitable donation on state income taxes.
- Credit against Virginia taxes: Reduction equals 65% of the amount approved for the donation.
For individuals in a taxable year, the minimum donation for issuance of tax credits is $500, and the maximum aggregate donations for issuance of tax credits are $125,000. There are no limitations for businesses.
IMPORTANT: Please consult your Tax Advisor to determine your specific tax savings. Donors must provide the VDOE tax certificate with the tax return in which the credits are being claimed.
How do I take advantage of the tax credit program?
PRIOR to making a donation:
- Complete the below intent form to reserve your EIS tax credits through Northstar. The Development office will respond to your request within 5-business days.
- Northstar will confirm your reserved credits and send you the “VDOE Request for Preauthorization For Tax Credits” form to complete.
- Complete and return the “VDOE Request for Preauthorization For Tax Credits” form to Northstar within 30-days. Northstar will work with our partner to submit forms to the VDOE for tax credits.
- Once the pre-authorization is approved by VDOE, Northstar will send you directions to make a donation.
- Your gift will be used to support scholarships for students at Northstar.
AFTER your donation:
- You’ll receive an acknowledgement of your donation.
- You will receive a VDOE tax certificate to submit with your tax return in which the credits are being claimed.
- Your donation will be put to immediate use providing students with disabilities excellent education and career opportunities.
Northstar will contact you within 5 business days to confirm your reservation of tax credits. Contact Katie Lewis with any questions at klewis@northstarva.org.
Information presented here is not intended to provide, and should not be relied on for tax, legal, or accounting advice. Please consult your independent tax advisor before engaging in any transactions. Please note that gifts made through donor-advised funds are not eligible for tax credits.