Donor Tax Credits
MISSOURI FOOD PANTRY TAX CREDITS
1. What is the MFPTC?
The MFPTC incentivizes Missouri taxpayers to donate to their favorite food pantries each year. By making a donation, an individual, corporation, or trust can receive up to 50% of their gift back through a state tax credit. The maximum value of the credit is $2,500 for an individual or $5,000 if filing jointly. Not all nonprofits participate in the program so it is important to reach out and ask your favorite food insecurity agencies if they offer the credit.
2. Are there any exclusions to receiving the MFPTC?
Gifts-in-kind, stock donations, and gifts from Donor Advised Funds do not qualify for the credit. Only direct cash donations are eligible.
3. I have made a cash donation to Food Outreach in 2023. What happens next?
All gifts received by year-end may be eligible for the credit. If you make a gift of $100 or more before December 31, 2023, you will automatically receive a tax form in the mail in February 2024. This form must be submitted with your state tax return by the filing deadline. If you are a Missouri resident and make a gift of less than $100, you can reach out to [email protected] after February 1, 2024, to request the MFPTC form be sent to you.
4. I plan to file an extension for my taxes in the coming year. Am I eligible for the MFPTC?
Unfortunately, the state is very strict on filing deadlines. You must file your 2023 Missouri taxes by April 18, 2024, in order to be eligible for the credit. If you file them later, you will be eligible to apply the tax credit to a future tax year.
5. Am I guaranteed the MFPTC?
The State of Missouri apportions $1,750,000 into the MFPTC program each year. MFPTC claims will be held by the Missouri Department of Revenue until after all returns received on April 18 have been processed to determine if the total amount claimed exceeds $1,750,000. If claims exceed $1,750,000, the Department will apportion credits in an equal ratio among all valid returns filed. Any remaining credit from an applicant can be applied to future tax years.
6. I have additional questions related to my specific tax situation. Can you help?
Food Outreach is grateful to be able to offer the MFPTC to our donors. However, we cannot give tax advice. Please reach out to your accountant or tax service with questions related to your specific financial situation. Additional information about the MFPTC can also be found here: dor.mo.gov. You may also call the Missouri Taxation Division at (573) 751-3220 or e-mail: [email protected].
If you have any other questions, please contact Justin Kralemann, Sr. Director of Development at [email protected] or call 314-652-3663 X 1117.
Food Outreach has Missouri Food Pantry Tax Credits available. This program provides a tax credit to any Missouri taxpayer (individual, corporation, or trust) that makes a financial donation of cash (gifts-in-kind, stocks, and gifts from Donor Advised Funds do not qualify) to Food Outreach.
MISSOURI NEIGHBORHOOD ASSISTANCE PROGRAM BUSINESS TAX CREDITS:
1. What is the NAP Tax Credit?
The Neighborhood Assistance Program (NAP) allows Missouri taxpayers to determine where their state tax dollars will be utilized by donating to charitable organizations. Food Outreach has been approved to offer $249,000 in 50% NAP tax credits through June 30, 2025.
Eligible donors may receive a tax credit for an eligible donation equaling 50% of their gift to Food Outreach. This credit combines with your federal and state charitable income tax deduction to lower the actual net cost of your gift to cents on the dollar.
2. Who qualifies for the credit?
- Corporations
- S-Corporations
- Individuals operating a farm in Missouri
- Individuals operating a sole proprietorship
- Individuals with rental property in Missouri
- LLCs
- Partnerships
- Express companies
- Financial institutions
- Insurance companies
3. What types of business taxes can the credit be applied toward?
- Ch. 143 – Income tax, excluding withholding tax
- Ch. 147 – Corporate franchise tax
- Ch. 148
- Bank Tax
- Insurance Premium Tax
- Other Financial Institution Tax
- Ch. 153 – Express Companies Tax
4. Does my business have to be physically located in Missouri to qualify?
Your business is not required to be geographically located in Missouri to qualify for the credit. However, your business would need to have a tax burden with the state to qualify.
5. What type of gifts qualify for the tax credit?
Ineligible Donations Include:
- Donations from Donor-Advised Funds
- Private Company Stock Donations
6. Is there a minimum or maximum donation amount to qualify?
Food Outreach is pleased to offer NAP Credits to businesses that make a qualifying donation of $10,000 or more. Food Outreach has been awarded $249,000 in NAP Credits. There is no maximum donation amount. Rather, it will depend on the remaining balance of NAP Credits the agency has available to distribute at the time of the donation.
7. Can I combine a Missouri Food Pantry Tax Credit with a NAP Credit for greater savings?
A donor can utilize both credits on their returns, but they cannot combine the credits on the same gift. A separate gift would need to be made to qualify for the second credit. Ex. A donor donates $10,000 and receives a NAP Credit for their business. They also make a $5,000 donation and receive an MFPTC Credit as an individual.
8. How Do I Make a Gift and What is the Process for Receiving a Credit?
If you are interested in receiving a NAP Credit for a donation, please contact Justin Kralemann, Sr. Director of Development, at 314-710-5540 or [email protected]. After Food Outreach receives the eligible donation, you will be sent a specific form that must be filled out, along with other documentation, to apply for the credits. Once you complete and return the notarized NAP form with proper documentation, Food Outreach will mail the application and proof of donation to the Missouri Department of Economic Development. You will receive a certification letter directly from the State of Missouri indicating approval within 3-4 weeks, including directions on how to redeem your tax credits. Eligible donations can be redeemed or claimed when you file your tax return. Any remaining tax credit balance can be used during the next five years. A donor’s application for NAP Credits must be submitted to the state within 12 months of Food Outreach receiving the gift.
9. Are there any other details I should know?
NAP tax credits are NOT saleable, transferable, or refundable. A gift of appreciated securities would provide additional tax benefits related to avoiding capital gains. None of the information above is intended to represent tax advice. Please consult your tax advisor to learn how NAP Credits will benefit you specifically.
