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.
In 2012 alone, more than 200 charitable donors at the Community Foundation of the Great River Bend received $323,264.20 in state tax credits as a result of their generous gifts. This number translates into almost $1.3 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 with a limit of $300,000 for an individual or $600,000 for a couple (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.
$6 million is available in Iowa tax credits for 2013!
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
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.
For additional Endow Iowa info, visit http://www.iowaeconomicdevelopment.com/CommunityDevelopment/Philanthropic.
**Please note that Endow Iowa Eligible gifts will be processed by the Community Foundation. You will receive the Endow Iowa Application in the mail once the gift is processed.