The major component of the Endow Iowa Program is the Endow Iowa Tax Credit. This credit offers taxpayers the opportunity to apply (on a first-come, first-served basis) for a possible 20% tax credit against taxes imposed in Iowa in addition to the normal charitable income tax deductions for certain charitable gifts. The gift must be to a permanently endowed fund within the qualified foundation or community affiliate organization for the benefit of Iowa charitable causes. The tax credits can be claimed by individuals, businesses, or financial institutions. The program is administered by the Iowa Department of Economic Development; for more information please visit their website at www.IowaLifeChanging.com/EndowIowa or contact your local community foundation.
Here is what the gift could mean for you:
amount of gift
$10,000
Endow Iowa tax credit
$2,000*
net federal & state deduction
$10,000**
federal & state tax rate
41.9%**
federal & state tax savings
$4,200****
total tax savings
$6,200
net cost of gift
$3,800
* 20% of the charitable gift made to a permanently endowed fund at a community foundation - maximum gift of $500,000 per taxpayer ** The entire amount of the gift is deductible on both state and federal taxes *** Individual marginal tax rates vary from 0% to 41.9% **** Assumes that individual taxpayer utilizes Schedule A (itemized deductions on their federal tax return)
Administrative Rules for the Endow Iowa Tax Credit
