Endow Iowa

Get credit for creating lasting good. 

 

Endow Iowa Tax Credits: $3,989,742 as of December 11, 2017
While the $6 million in credits available through Endow Iowa have run out for 2017, donors can make a gift through CFGRB now and be placed on a waiting list in the order gifts are received to request a 2018 tax credit. If you wish to receive a tax credit in 2018, we recommend you make your gift now. Contact Anne Calder at 563/326-2840 for assistance.

Giving through the Community Foundation to the causes you care about is rewarding—in more ways than one. Your gift creates lasting change in the community, and the Endow Iowa Tax Credit Program offers you generous tax incentives to make it easier for you to give more for less.

Since 2004, nearly 2,000 donors at the Community Foundation of the Great River Bend received $2.8 million in tax credits as a result of their generous gifts.  This number translates to more than $11 million in endowment that will provide a permanent source of support to nonprofits in our region.

The Endow Iowa Tax Credit program was established to encourage building permanent endowments to benefit Iowa. Iowa taxpayers may apply for the tax credit if they make a gift to an endowed Fund that supports charitable activities in Iowa. Tax credits are 25% of the gifted amount.  Individuals are limited to $300,000 in tax credits for a $1.2 million gift and a couple is limited to $600,000 in tax credits for a $2.4 million gift (if both are Iowa taxpayers).

An individual or a business creating individual tax liability (partnership, LLC, S Corp., estate or trust) is eligible to receive a tax credit as long as they pay taxes in Iowa. A “C” Corporation may also receive a tax credit under this program. You can take the tax credit on your Iowa income tax return only. 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. If an Iowa tax credit is received for a gift, no Iowa income tax deduction for the same gift is allowed.

Stay tuned, as Illinois has similar legislation pending to introduce Endow Illinois. While it has not yet passed, it does have strong and growing support in the legislature. We will keep you posted on the bill’s progress.

How it works

Amount of Gift   $10,000  
35% federal income tax deduction savings    $3,500 
25% Endow Iowa state tax credit savings    $2,500
Total tax savings on $10,000 gift    $6,000
Actual cost of the gift  $4,000  


The savings are even greater if a donor makes the same gift using appreciated securities instead of cash, because the donor avoids capital gains tax on the donated securities.

Additional info

 

"Through his estate, Ed wanted to provide for his family and give something back to the community."

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