Frequently asked questions

• What is the Endow Iowa Tax Credit Program?

  • The Endow Iowa program gives an Iowa income tax credit of 25% to donors of endowment gifts to qualified community foundations. The endowment fund receiving the gift must support charitable activities in Iowa. Donors will receive the 25% Endow Iowa tax credit in addition to normal federal charitable income tax deductions for certain charitable gifts. A bill passed by the legislature in 2011 and signed by Governor Branstad increased the total amount of tax credits available to $4.5 million annually, retroactive to January 1, 2011.

• What is a qualified community foundation?

  • A qualified community foundation substantially complies with the standards set forth by the Council of Foundations. The Community Foundation of the Great River Bend has met these standards.

• Are gifts to affiliate funds qualified?

  • Yes, gifts to funds associated with an affiliate of the Community Foundation of the Great River Bend are qualified.

• What is an endowment gift?

  • To receive a tax credit, the donor makes a gift to an endowment fund that supports charitable activities in Iowa. An endowment fund is a permanent charitable fund that distributes grants annually at a rate equal to or less than 5%.

• Is there a maximum gift under this tax credit program?

  • Tax credits are 25% of the gifted amount, but tax credits are limited to $227,590 per person or $455,180 per couple (if both are Iowa taxpayers). 

• Is there a minimum gift under this tax credit program?

  • The legislation does not set a minimum. Practical considerations should inform the donor on a minimum gift size.

• What kind of taxpayer can receive a tax credit?

  • An individual or a business creating individual tax liability (partnership, LLC, S Corp., estate or trust). A “C” Corporation also can receive a tax credit under this program.

• What is the amount of tax credit available?

  • Approximately $4.5 million in tax credits will be available through Endow Iowa beginning in 2011 (retroactive to January 1, 2011).

• How do you apply for this tax credit?

  • Make a gift to an endowment fund that meets the Endow Iowa criteria. The Community Foundation will provide you with an application for the tax credit. You fill in Section I and return it to the Foundation. They fill in Section II and send it on to the Iowa Department of Economic Development. IDED issues a letter and sends it to you with the amount of your tax credit.

• How do you use this tax credit?

  • You attach the IDED letter to your tax return and take the credit on your return. If you cannot use the entire credit this year, you can carry it over for up to five years. The tax credit is not transferable.

• Where can you get additional information on the Iowa tax credit program?

  • You can visit the website www.iowalifechanging.com/endowiowa, or you can call the Department of Economic Development at (515) 242-4807. You can also call the Community Foundation of the Great River Bend at (563) 326-2840 or contact them by email with your question at info@cfgrb.org.