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Endow Iowa Tax Credit
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About Endow Iowa Tax Credit Program
The Endow Iowa Tax Credit program was established to elevate charitable giving to qualified, permanent endowment funds and provide sustainable support to communities and nonprofit organizations across the state.
. We live in generous communities with citizens who have made investments in the quality of life we enjoy today through charitable giving. To continue this tradition of giving, the Omaha Community Foundation and its affiliate network of the Community Foundations of Southwest Iowa are proud to offer the Endow Iowa Tax Credit, a 25% state tax credit on qualified gifts. Since 2004, Endow Iowa Tax Credit program has leveraged over $435million in permanent endowment fund gifts at community foundations across the state.
How It Works
- A variety of gifts qualify for Endow Iowa Tax Credits including cash, real estate, appreciated securities, and outright gifts of retirement assets.
- Gifts can be made to an existing permanent endowed fund or one that you establish. The gift must benefit one or more Iowa charitable causes.
- Effective January 1, 2023, tax credits of 25% of the gifted amount are limited to $100,000 in tax credits per individual for a gift of $400,000 or $200,000 in tax credits per couple for a gift of $800,000 if both are Iowa taxpayers.
- Eligible gifts will qualify for credits on a first-come, first-served basis until the yearly appropriated limit is reached.
- Effective July 1, 2023, there will be no waitlist for Endow Iowa Tax Credits. Only applications received on or before June 30, 2023 will be added to a wait list to receive tax credits in 2024.
- Beginning July 1, 2023, applications must be submitted within twelve months of the date of the gift.
- All qualified donors have five years to use their Endow Iowa Tax Credits.
- Effective August 28, 2018, taxpayers who receive Endow Iowa Tax Credits and itemize on their federal tax returns will be required to reduce their federal charitable deductions by the value of any state tax credit received. There is an opportunity to deduct the full value of the gift if you have not reached the $10,000 state and local taxes (SALT) Cap. We recommend consulting with your tax professionals.
- For example, a taxpayer that makes a $1,000 charitable donation to Endow Iowa would receive a $250 (25%) state tax credit. When filing federal taxes, the taxpayer cannot deduct the entire $1,000 charitable donation like in the past, but only the difference between the donation and the state tax credit, or $750 in this example.
Endow Iowa Tax Credit Illustration
With Endow Iowa, contributions to the Community Foundation cost donors less. Here is what a gift could mean for you:
| Gift Amount | $1,000 | $10,000 | $100,000 | $800,000 |
| Endow Iowa Tax Credit (%25%) | (250.00) | (2,500.00) | (25,000.00) | (200,000.00) |
| Net Federal Deductible Gift | $750.00 | $7,500.00 | $75,000.00 | $600,000.00 |
| Federal Tax Savings (37%)* | (277.50) | (2,775.00) | (27,750.00) | (222,000.00) |
| Net Cost of Gift | $472.50 | $4,725.00 | $47,250.00 | $378,000.00 |
*For ease of illustration, the example above does not factor in the federal/state net tax effect. Example assumes the donor is in the 37% tax bracket.
Download the Endow Iowa Tax Credit Program Fact Sheet
Contact our staff to learn more about this program or how we can work with you and your professional advisor to determine the gift that best meets your charitable giving and financial goals.