ENDOW IOWA TAX CREDIT PROGRAM
One of the Greater Poweshiek Community Foundation’s most essential components is building a permanent collection of endowed funds through contributions made by donors who are passionate about various causes. GPCF currently has 127 different funds (only some of these are endowed) to which donors can contribute, or donors can elect to start their own fund with a donation of $10,000 or more. Because GPCF is a qualified community foundation, the endowed funds are eligible for the Endow Iowa Tax Credit Program.
The Endow Iowa Tax Credit Program provides state income tax credits to individuals, businesses, or financial institutions that donate money to a permanent endowment fund at a community foundation that meets national standards, like the Greater Poweshiek Community Foundation.
The Endow Iowa Tax Credit Program offers donors generous tax incentives to make it easer to give more for less. Since 2003, more than $167 million has been invested in community foundations through Endow Iowa, improving residents’ lives both now and for years to come.
The tax credit is for 25% of the amount of the donation, up to a maximum of $300,000 credit per taxpayer for a gift of $1,200,000, or $600,000 in tax credits per couple for a gift of $2,400,000 if both are Iowa taxpayers, in addition to the normal federal tax deduction for charitable gifts. All qualified donors can carry forward the tax credit for up to five years after the year the donation was made. Approximately $6 million in tax credits will be available annually through Endow Iowa.
Eligible gifts will qualify for credits on a first-come/first-serve basis until the yearly appropriated limit is reached. If the current available Endow Iowa Tax Credits have been awarded, qualified donors will be eligible for the next year’s Endow Iowa Tax Credits. The Community Foundation encourages donors to act early in the year to ensure they receive Endow Iowa Tax Credits.
For more information about Endow Iowa or establishing a fund at Greater Poweshiek Community Foundation contact Delphina Baumann at 641-236-5518 or firstname.lastname@example.org
- Through a qualified community foundation.
- To a permanent endowment fund which limits distributions to 5%.
- For the benefit of one or more Iowa charitable causes.
- By individuals, corporations or financial institutions.
- Tax credits of 25% of the gifted amount are limited to $300,000 per taxpayer or $600,000 per couple if both are Iowa taxpayers.
- Eligible gifts will qualify for credits on a first-come/first-serve basis.
- GPCF will automatically send an Endow Iowa Tax Credit application for gifts of $100 or more. If gift is below $100, please contact GPCF to request a form.
- All qualified donors have five years to use their Endow Iowa Tax Credits.
- Endow Iowa Tax Credits allow donors to have even greater impact on their philanthropic interests in Poweshiek County now and into the future.
This is an exciting program that benefits both donors and charities. Below is an approximation of the net after-tax costs of contributing to a fund. Donors should contact their professional advisors to confirm accuracy.
|Amount of Gift||$10,000|
|Endow Iowa Tax Credit||$2,500*|
|Net federal deduction||$10,000**|
|Donor’s federal tax rate||$39.6%***|
|Federal tax savings||$3,960****|
|Net Cost of Gift||$3,540*****|
*25% of the charitable gift made to a permanently endowed fund at a community foundation.
** The entire amount of the gift is deductible on federal taxes.
*** Individual marginal tax rates may vary.
**** Assumes that individual taxpayer utilizes Schedule A (itemized deductions) on their federal return.
***** Gift appreciated securities and your net cost is even less.