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Endow Iowa

ENDOW IOWA

 

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 generous tax incentives to make it easier for you to give more for less. Those who give to a permanently endowed fund at a qualified community foundation or affiliate organization are eligible to receive 25% tax credits for their gifts. Community members who give also are able to take advantage of the tax credits in conjunction with federal tax deductions.

The Endow Iowa Tax Credit is awarded on a first-come, first-served basis for gifts made to a permanent endowment fund, established for the benefit of Iowa charitable causes, at a qualified community foundation. The tax credits can be claimed by individuals, businesses, or financial institutions. The program is administered by the Iowa Economic Development Authority; for more information please visit their website or contact your local community foundation.

What might Endow Iowa Tax Credit mean for you?  Click here to calculate a sample illustration of your own.

Since 2003, more than $115 million has been invested in community foundations through Endow Iowa, improving residents’ lives both now and for years to come.

Here is what the gift could mean for you:

Amount of Gift $10,000
Endow Iowa Tax Credit $2,500*
Net Federal Deduction $10,000**
Federal Tax Rate 35%**
Federal Tax Saving 3,500****
Total Tax Savings $6,000
Net Cost of Gift $4,000

 

*        25% of the charitable gift made to a permanently endowed fund at a community foundation – maximum

annual Endow Iowa tax credit per taxpayer is $232,147.25.

**      The entire amount of the gift is deductible on federal taxes- not state.

***    Individual marginal tax rates vary.

****  Assumes that individual taxpayer utilizes Schedule A (itemized deductions on their federal tax return)

Endow Iowa Fast Facts

  • Endow Iowa was created in 2003 to encourage gifts to permanent endowments at qualified community foundations.
  • Donors are eligible to receive 25% tax credits for donations to qualified community foundations and affiliates.
  • Donors are eligible for Endow Iowa tax credits in addition to appropriate federal tax benefits.
  • Approximately $6 million in tax credits will be available annually through Endow Iowa.
  • Endow Iowa tax credits have the potential to generate an estimated $16 million in permanently endowed gifts at Iowa community foundations and affiliates per year.
  • In 2012, more than $4.6 million in Endow Iowa tax credits were awarded, generating more than $18.5 million in charitable gifts.
  • In 2012, donors received tax credits for more than 1,990 separate donations to at least 71 different community foundations and affiliate organizations through Endow Iowa.
  • Since 2003, more than $115 million has been invested through Endow Iowa to improve residents’ lives.
  • Below is a more detailed categorization of the individual donations that received Endow Iowa Tax Credits.
 Donation Amount 2012

Donations

2011

Donations

2010

Donations

2009

Donations

2008

Donations

2007

Donations

2006

Donations

 $1,000 or less 1,391 1,849 1,491 1,112 1,297 656 424
 $1,001 – $30,000 533 663 457 389 485 319 177
 $30,000 – $100,000 38 59 49 30 69 45 36
 $100,000 + 28 25 28 15 30 20 18
 Total Donations 1,990 2,596 2,025 1,546 1,881 1,040 655

Administrative Rules for the Endow Iowa Tax Credit

Administrative Rules (PDF)

Download Adminstrative Rules (WORD)

Legislation for the Endow Iowa Tax Credits

Endow Iowa Legislation (PDF)

Download Endow Iowa Legislation (WORD)

2005 – House File 868

House File 868 – 2005 (PDF)

Download House File 868 – 2005 (WORD)

Application for Endow Iowa Tax Credits

Once an Endow Iowa eligible contribution is made, your local community foundation will assist you in completing the Endow Iowa Tax Credit Application. The application is available through your local community foundation.