The Missouri Department of Economic Development has announced it will award $12.6 million in 50% and 70% tax credits through the Neighborhood Assistance Program to 66 organizations for community development projects statewide.
One beneficiary is Whole Kids Outreach, a nonprofit serving rural families and children from newborn to age three through center-based and home visiting programs to improve child health and parent resiliency, and decrease poverty, abuse and neglect.
Co-founder and director Anne Francioni explained the tax credits will incentivize donations from businesses, partnerships and landowners, saving them cash during tax season and keeping their dollars in the community.
“The state has given us these credits, to make it more amenable or more worthwhile for big donors contributing to local community efforts,” Francioni.
Missouri nonprofits provide critical services to citizens and our most vulnerable populations, Gov. Mike Parson said in a press release.
“This program supports organizations in their work to provide assistance to Missourians who need it most, which helps ensure our communities remain healthy and strong,” Parson said.
NAP helps nonprofit organizations leverage private-sector funds by providing partial state tax credits to businesses that make contributions to approved community improvement projects. During the Fiscal Year 2022 cycle, tax credits were reserved for organizations providing critical services, with priority given to projects providing job training, education, and those located in previously underserved areas of the state. Other project types include crime prevention, community service projects, and revitalization of community-based buildings and areas.
“A strong economy begins with thriving communities, and the Neighborhood Assistance Program is a great example of the public and private sectors collaborating to ensure both,” Missouri Department of Economic Development Acting Director Maggie Kost said. “This program increases the positive impact nonprofits have on their communities, which means increased opportunity and prosperity for all Missourians.”
WKO had to write a proposal for the competitive NAP program showing its success. Francioni explained WKO’s services are broad enough that it qualifies for both credits slots in different areas — their Youth Opportunity Program, summer camps and center-based programs can provide 50% tax credit to donors, and their home visiting programs return 70%.
“So over the next two years, Whole Kids can take donations up to real close to $500,000 and give out a total of $350,000 in tax credits to donors,” she said.
Whole Kids typically brings in most of its revenue through smaller donations, with few of what Francioni called heavy hitters. She believes Whole Kids Outreach will now bring in much larger donations because so much of what donors give will return to their wallets.
“I’m going to get a 70% larger donation than I probably would have if I didn’t have those tax credits,” she said.
WKO operates out of Ellington and has three home visiting programs: Healthy Families America, a subcontract for parent-teacher services with Reynolds County R-II school district and Nurses for Newborns. It serves Butler, Carter, Howell, Dunklin, Iron, Oregon, Reynolds, Ripley, Shannon, Stoddard and Wayne counties.