As 2024 draws to a close, we reflect on the impact of the Endow Iowa Tax Credit program, which has leveraged over $300 million in gifts to permanent endowment funds since its inception in 2003. These gifts benefit Iowa charitable causes and allow donors to amplify their generosity while receiving a 25% Iowa tax credit. While all 2024 credits have been allocated as of December 11, it’s time to prepare for 2025.

What You Need to Know for 2025

The Endow Iowa application process for 2025 will officially open in January. Here’s a brief overview of the timeline and updates:

  • January 2, 2025: The Endow Iowa application form will be emailed to all Iowa community foundations.
  • January 15, 2025: The application portal in IowaGrants.gov will re-open at 8 a.m. on the third Wednesday of January.

Key reminders about the program:

  • A variety of gifts qualify for tax credits, including cash, real estate, appreciated securities, and retirement assets.
  • Gifts must benefit Iowa charitable causes and be made to a permanent endowment fund within the qualified foundation or community affiliate organization.
  • Tax credits are limited to $100,000 per individual or $200,000 per couple annually, with a maximum gift of $400,000 or $800,000, respectively.
  • Applications must be submitted within 12 months of the gift date, and credits are awarded on a first-come, first-served basis until the annual limit is reached.
  • Electronic signatures are accepted on the Endow Iowa application form.
  • The application form must be a 2025 version, completed and signed by all parties, and uploaded to IowaGrants.gov.

Donors awarded 2024 tax credits can expect to receive their tax credit certificates in the coming weeks either in December or early January.

Tax Benefits and Considerations

The Endow Iowa Tax Credit allows you to reduce your Iowa tax liability by 25% of your donation while supporting causes you care about. However, donors should consult with tax professionals to understand how these credits interact with federal tax deductions, particularly in light of the SALT cap.

Get Started

Plan your giving strategy for 2025. Whether you want to establish a new endowed fund or contribute to an existing one, the Community Foundations of Southwest Iowa are here to help you navigate the process.

For questions about the Endow Iowa Tax Credit Program or to begin planning your gift, please reach out to our team. Together, we can create lasting change in Iowa communities.