Frequently asked questions

• What is the Endow Iowa Tax Credit Program?

  • The Iowa Values Fund legislation established a new tax credit program. This 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. While still eligible for a federal tax deduction, under Endow Iowa modifications donors no longer qualify to receive a stae chartiabel deduction for this special contribution. They will, however, be able to take advantage of the increased tax credit in conjuction with federal tax benefits.

• 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?

  • 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?

  • The maximum gift that will be eligible to receive a corresponding tax credit is $500,000 (credit of $100,000) per person. A couple may make a joint gift of $1,000,000 and receive a tax credit of $200,000.

• 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 million in tax credits will be available annually through Endow Iowa.

• 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.