Endow Iowa tax credit program.

The Endow Iowa Tax Credit Program provides a wonderful incentive for citizens interested in giving back to support important charitable organizations and causes in their communities. The Endow Iowa tax credit is 25% of the amount of the endowed charitable gift. The State of Iowa offers this tax credit as an incentive to encourage community-minded citizens to give back to their communities, understanding that these endowed gifts can make a very significant and

long-term impact in advancing the quality of life in Iowa communities.

 

Program Description  25% Tax Credit

 

Chapter 15E.305 of the Iowa Code establishes an Endow Iowa Tax Credit program in support of Community Foundations. The Endow Iowa Tax Credit program provides tax credits to individuals providing a permanent endowment gift to a qualified community foundation organized or operating within the State of Iowa. The awarded tax credit will be equal to 25% of the qualifying gift subject to the availability of Endow Iowa tax credits. Any tax credit awarded in excess of an individual’s tax liability for the current tax year may be credited to the individual’s future tax liability for the following 5 years or until depleted, whichever occurs first. The state of Iowa provides $6 million in Endow Iowa tax credits annually and the maximum credits allowed per individual is  $100,000.

 

Eligible gifts must be made to “qualified community foundations.”  A qualified community foundation must substantially comply with the standards set forth by the Council on Foundations in their “National Standards for U.S. Community Foundations.” The Fort Dodge Community Foundation and United Way a qualified community foundation. Eligible gifts must also be made to “permanent endowment funds,” which as defined by this program have an annual spending rate equal to or less than 5%. The purpose of the endowment fund must be to benefit a charitable cause or causes in Iowa.

 

25% Endow Iowa Tax Credits

 

The Endow Iowa Tax Credit program was created to allow new and innovative opportunities for donors to enhance the quality of life in their communities. Donors who establish an endowed fund with a qualified community foundation, (the Fort Dodge Community Foundation and United Way is a qualified community foundation) are eligible to receive a 25% state of Iowa tax credit for the amount of their gift and also take full advantage of federal income tax deductions that are afforded to charitable gifts. 

 

Note:  Individuals are encouraged to consult with their tax advisor.

 

For more information on how you can qualify for Endow Iowa tax credits, contact:
Randy Kuhlman, C.E.O., Fort Dodge Community Foundation 
Phone:  515-573-3171 
Email:  rk@fd-foundation.org.