Southeast Missouri Food Bank in crunch to give away tax credits

The Southeast Missouri Food Bank is struggling to give its state tax credits to eligible donors before they expire at the end of this month.

The food bank received $250,000 in Neighborhood Assistance Program tax credits in March 2010. Through this program, eligible donors to the food bank can receive Missouri income tax reductions equal to 50 percent of the value of their donation.

Shortly after the credits were awarded to the food bank, executive director Karen Green believed all the credits would be applied toward the purchase of a new warehouse. Just 45 days ago, that deal fell through, leaving the food bank scrambling to find other donors interested in the tax credits.

"We didn't abuse the privilege of having these by waiting too long to try to promote them, we actually had them committed," Green said.

She's concerned that if the food bank doesn't use the credits, it will jeopardize the organization's ability to receive them again in the future.

Entities that do not use all the tax credits awarded to it are still eligible to reapply for more, said John Fougere, spokesman for the Missouri Department of Economic Development.

"However, we do utilize a points system that takes into account the applicant's past performance, and if that applicant failed to utilize all their credits previously, it can affect how much is awarded, if any, the second time," he said.

Businesses and individuals who operate a sole proprietorship, operate a farm, have rental property or have royalty income are eligible to receive Neighborhood Assistance Program tax credits. So are shareholder in an S-corporation, a partner in a partnership or a member of a limited liability corporation.

"People have the opportunity to give locally instead of writing that tax check to the state," Green said.

The food bank is accepting commitments for its Neighborhood Assistance Program credits in increments of $1,000 or more. It has $247,000 in available tax credits it hopes to have committed to donors by March 31.

All donations will go to help the food bank purchase a new warehouse and distribution facility, something Green says it desperately needs.

Its existing facility on Nash Road is about one-third of the size the food bank needs to serve its 16-county area, she said.

Because its warehouse is too small, the food bank has to rent off-site dry and cold storage, paying about $12,000 a month in combined rents.

"That's a quarter of a million dollars a year that if we had our own home we wouldn't be throwing away. That could fill a lot of backpacks and mobile food pantries," Green said.

Although it has operated since 1985, the food bank never owned a warehouse, she said.

The food bank last year distributed 6 million pounds of food through a network of 160 charitable organizations in Southeast Missouri. Its BackPacks for Friday program serves 501 children in 25 schools in 13 Southeast Missouri school districts.

Those interested in learning more about the NAP credit program may call Green at 651-0400.

mmiller@semissourian.com

388-3646

Pertinent address:

3920 Nash Road, Cape Girardeau, Mo