How Does Endow Iowa Work?

• State legislators passed innovative legislation to create the Endow Iowa Tax Credit program in order to promote gifts to qualified permanent endowments and provide sustainable support to Iowa nonprofits. 
  
• Endow Iowa Tax Credits are only available to qualified gifts made through a qualified Iowa community foundation, like the Boone County Community Foundation and our affiliates.
  
• A variety of gifts qualify for Endow Iowa Tax Credits including cash, real estate, farmland, appreciated securities and outright gifts of retirement assets.
  
• Tax credits of 25% of the gifted amount are limited to $300,000 in tax credits per individual for a gift of $1.2 million or $600,000 in tax credits per couple for a gift of $2.4 million if both are Iowa taxpayers. No minimum gift amount is required to qualify for Endow Iowa Tax Credits.
  
• Endow Iowa Tax Credits are available on a first-come/first-serve basis until the yearly appropriated limit is reached. If the current year’s tax credits have been exhausted, qualified donors are eligible for the next year’s Endow Iowa Tax Credits.
  
• 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.