The Iowa Economic Development Authority recently announced that 2018 Endow Iowa Tax Credits are all claimed as of February 16, 2018. Gifts that are eligible for the Endow Iowa Tax Credit given after the current calendar year’s funds have been exhausted have historically rolled over into the credit pool for the following year.
Starting February 19, 2018, the Iowa Economic Development Authority (IEDA) will review applications for 2019 credits and start a wait list. In January 2019, IEDA will begin to issue tax credit certificates for those on the wait list, in the order in which they are received.
Since the inception of the Endow Iowa program at GPCF in 2010, donors have given over $3.8 million to endowed funds at the Foundation and in 2017, 401 donors gave a total of $963,297 to endowed funds managed by GPCF. Also notable in 2017, the GPCF board issued a dollar for dollar endowed fund match up to $3,000 per fund in November and December. The challenge maximum of $45,000 was met by mid-December generating a total of $90,000 among 28 different funds.
The Endow Iowa legislation, sponsored by the Iowa Council of Foundations, encourages citizens to utilize philanthropy as a catalyst to build local endowments at community foundations and improve the quality of life in the community. In the past GPCF has met with legislators to discuss benefits derived from the Endow Iowa Tax Credit and the many ways that endowed funds are keeping private dollars in our communities and providing a permanent fund that will support local charitable causes.
Endow Iowa allows taxpayers to receive a 25% Iowa tax credit in addition to normal federal charitable income tax deductions for certain charitable gifts. By coupling the Endow Iowa credit with federal deductions, the net cost of gifting to a beloved nonprofit fund is about 40 cents on the dollar for some donors. This means that a $10,000 endowed gift to the Greater Poweshiek Community Foundation or one of its funds will cost a couple in the 35% tax bracket just $4,000 after the state tax credit and federal tax deductions.
To consider a gift to an endowed fund, please visit our Funds here. GPCF manages endowed funds that support of variety of sectors and causes including education, historic preservation, the arts, services for the elderly, unrestricted grant making, food insecurity, environmental issues, mental health and support for our local hospital.
If you have questions about the Endow Iowa program or funds at GPCF please contact Nicole Brua-Behrens or Amy Blanchard at Greater Poweshiek Community Foundation (GPCF) at 641-236-5518. Greater Poweshiek Community Foundation serves the community and enhances the quality of life in the county by helping people accomplish their charitable giving objectives, managing and preserving funds, distributing investment earnings in the form of grants and providing community leadership along with our partner the Claude W. and Dolly Ahrens Foundation.