Endow Iowa

Endow Iowa Tax Credit...

STATE ENDOWMENT FUND LEGISLATION

    Endow Iowa was created to allow new and innovative opportunities for donors to enhance the quality of life for the citizens of Iowa. Through an increase in philanthropic activity, by encouraging contributions from individuals, businesses, and organizations to new and existing community foundations across the state. Endow Iowa was a project created through official legislation in 2005.

To be eligible to receive a 20% Endow Iowa tax credit, charitable gifts must be made:
     • to a "qualified" community foundation (the Northwest Iowa Community Foundation is a qualified community foundation).
     • to a permanent endowment fund. An endowed fund can be started at the Northern Iowa Community Foundation for as little as $5,000.
     • for the benefit of one or more Iowa charitable causes.
     • by individuals, corporations, or financial institutions.

The tax credit:
     • is 20% of the gift amount in addition to federal and state income tax deductions for charitable gifts.
     • may be applied to state taxes
     • may be used in the year the taxpayer receives the tax credit letter from the Iowa Department of Economic Development.
     • also allows any excess credit not used in the authorized tax year may be carried forward for up to five additional tax years.
     • is issued on a "first come, first serve" basis with a total of $3 million in tax credits available.

Example: Contribution of $10,000

COUNTY ENDOWMENT FUND LEGISLATION

Another of the State of Iowa’s efforts to promote philanthropy is the County Endowment Fund legislation (HF 2302, 2004 legislation) passed in 2005. Currently this bill provides that eight-tenths of one percent of the state’s gambling revenue will be distributed to the counties in Iowa that do not have gambling entities. These funds will be deposited and distributed through qualified community foundations such as the Northwest Iowa Community Foundation or affiliates of qualified community foundations that meet national standards and address county-wide needs.

In 2008, each eligible countywide community foundation received over $131,000 from the State of Iowa. Of that total, 75% must be used for grants to charities for current projects, with the remaining 25% maintained in a permanent endowment for similar purposes. Funds must be used for charitable, educational, and civic purposes within the county.

See List Endowed and Non-Endowed Community Funds