The Honorable Jim Justice
Office of the Governor
State of West Virginia
1900 Kanawha Boulevard, East
Charleston, WV 25305

West Virginia State Senate
State Capitol Complex, Building 1
1900 Kanawha Boulevard, East
Charleston, WV 25305

West Virginia House of Delegates
State Capitol Complex, Building 1
1900 Kanawha Boulevard, East
Charleston, WV 25305

RE: Renewal and Expansion of the Neighborhood Investment Program

Dear Governor Justice and Members of the West Virginia Legislature,

The West Virginia Neighborhood Investment Program (NIP) was established in 1996 to encourage charitable giving to local non-profit organizations.  The program allows 501(c)3 charities to apply for tax credit vouchers, which they then distribute to businesses and individuals who contribute to their organization.  By donating to approved NIP charities, contributors support their communities while earning credits to reduce certain West Virginia business and personal taxes. Since this program’s creation, there has been a marked increase in itemized charitable giving in the state.

West Virginia code 11-13J-12 terminates the NIP on July 1, 2021. If legislation to renew the program does not pass during the 2021 legislative session, this valuable program will expire. The NIP is the only state incentive for charitable giving in West Virginia and the program impacts at least 200 nonprofits annually, serving more than 600,000 people (about one third of the state’s population) in all 55 counties.

A wide variety of projects have historically been backed by NIP-supported giving. These project types include, but are not limited to:
• Emergency assistance
• Direct needs that provide self-reliance and independence from government assisted programs
• Affordable housing and emergency repair initiatives
• Counseling and housing assistance for victims of rape, domestic violence, and elder abuse
• Workforce advancement and job training programs
• Flood and other disaster relief
• Leadership and education programs for at-risk youth
• Transportation assistance providing vehicles to low-income individuals
• Free medical clinics for low-income persons
• College scholarship programs for low-income students
• Drug/alcohol prevention and recovery programs
• Homeless shelters and related services
• Food access and hunger assistance  
• Non-medical caregiving services for the elderly and disabled
• Economic development support
• United Way community-based programs
• Hospice services for low-income patients
• Arts education programs for low-income children
• Community foundations serving nonprofits in West Virginia.
In addition to their role in delivering vital programs and services, nonprofit organizations contribute to the state’s economy. Nonprofits employ more than 77,000 people in West Virginia which represent 14% of private employment in the state.

West Virginia charities are on the front lines of response to the COVID-19 pandemic and are grappling with growing community needs and declining revenues. Although they have received little direct assistance, nonprofits have not been immune to the impacts of the COVID-19 pandemic. The West Virginia Nonprofit Association has conducted a survey that found that 90% of the state’s nonprofits have either been unable to hold fundraising events or have had to cancel revenue generating programs, resulting in significant declines in income. While some of them have been able to adapt with virtual offerings, many organizations are reducing spending, laying off staff, or even temporarily shutting down. The survey further found that responding nonprofits are facing a 300 to 400 percent increase in services and needs of our citizens.

The continued availability of NIP credits to support charitable giving during state fiscal year 2022 will be critical to the survival of many organizations. While the NIP has been in existence for 25 years, the renewal and expansion of the program could be considered a stimulus for struggling nonprofit employers. Except unlike some other stimulus plans, the NIP has the added benefit for securing more than $2 in private donations for every $1 provided in state charitable incentives.

In 2020, the amount of credit requested was $6,598,400; this represents a value more than double the $3 million available within the program. Furthermore, requests for tax credits within the program have outpaced availability every year since 2000. It is also noteworthy that most donors are members of middle- to low-income households. The program thus helps working West Virginians reduce their taxes and direct resources to their choice of organizations that aid local communities, lessening the burden of government assistance.

Given the growing COVID-19 related needs within communities and key role of nonprofits in creating jobs and supporting our workforce, it is essential to continue and expand the NIP. The undersigned organizations ask that you support the renewal of the Neighborhood Investment Program during the 2021 regular session and expand the maximum tax credits certification in any state fiscal year to $5 million.

Sincerely,