Giving through the community foundation to the causes you care about is rewarding—in more ways than one. Your gift creates lasting change in the community, and the Endow Iowa Tax Credit Program offers you generous tax incentives to make it easier for you to give more for less. Those who give to a permanently endowed fund at a qualified community foundation or affiliate organization, including Hometown Community Foundation, are eligible to receive 25% tax credits for their gifts. Community members who give also are able to take advantage of the tax credits in conjunction with federal tax deductions.
Tax credits are offered on a first come, first served basis, with approximately $4 million available annually statewide. The tax credits can be claimed by individuals, businesses or financial institutions.
Since 2003, more than $50 million has been invested in community foundations through Endow Iowa, improving residents’ lives both now and for years to come.
Endow Iowa Fast Facts
Across the state
· Endow Iowa was created in 2003 to encourage gifts to permanent endowments at qualified community foundations.
· Donors will be eligible to receive 25% tax credits for donations to qualified community foundations and affiliates.
· Donors are eligible for Endow Iowa tax credits in addition to appropriate federal tax benefits.
· Approximately $4 million in tax credits will be available annually through Endow Iowa.
· Endow Iowa tax credits have the potential to generate an estimated $16 million in permanently endowed gifts at Iowa community foundations and affiliates per year.
· In 2008, more than $3.15 million in Endow Iowa tax credits were awarded, generating more than $15 million in charitable gifts.
· In 2008, donors received tax credits for more than 1,881 separate donations to 68 different community foundations and affiliate organizations through Endow Iowa.
· Since 2003, more than $50 million has been invested through Endow Iowa to improve residents’ lives.
· Endow Iowa is an effective investment in Iowa’s future: For every $1 of tax credit that the state offers, community foundations leverage $5 to support efforts that enhance the quality of life in communities across Iowa.
The Endow Iowa program is part of an effort to enhance philanthropic activity in the State of Iowa by encouraging contributions to community foundations. The program provides significant additional tax incentives for individual, business or organizational donors of community foundations.
Endow Iowa consists of two components:
• Tax Credits to Donors; • Grants to newly formed community foundations (or affiliates)
County Endowment Program
The Values Fund legislation also establishes a new county endowment program.
The County Endowment Fund legislation provides that, beginning in the year 2005, one-half of one-percent of the state's gambling revenues will be distributed to the 85 Iowa counties that do not have gambling entities. These funds are deposited and distributed through Qualified Community Foundations or Community Affiliates that address countywide needs. The program was so successful that in 2008, this distribution was increased to 0.8 percent.
The funding for this program is handled by the Iowa Department of Revenue, in collaboration with the Iowa Department of Economic Development.
How supporting Endow Iowa helps build Iowa's Community Foundations:
*Strengthens communities through philanthropy. Endow Iowa endorses the importance of philanthropy and encourages all Iowans to invest in their communities through endowment funds. These funds are permanent resources that build the capacity for communities to become self-sufficient by providing financial support to charitable projects and community betterment programs now and in the future.
*Develops local community leadership. Endow Iowa encourages leaders to mobilize community organizations and encourage charitable contributions. Community endowments help citizens promote, plan and prepare for the future and manifest their own community visions. More than 1,500 Iowa leaders are engaged in the community foundation movement annually.
* Creates philanthropic vehicles in communities of all sizes. Wealth often leaves Iowa’s communities and counties because there were no vehicles in place to receive gifts. Endow Iowa creates and provides the tools and vehicles to create endowment funds while strengthening existing community foundations. It is a low-cost way to positively impact Iowa forever.
* Encourages contributions that provide support NOW and in the future. The current Endow Iowa Tax Credit is an effective incentive for donors to make charitable contributions NOW and in the future. Endow Iowa establishes community endowments that create eternal financial sources to fund community betterment.
* Keeps dollars in Iowa… and invested in Iowa’s future. Annually, Iowans transfer more than $4.9 billion through probate estates, with each estate averaging $274,425. Planned giving creates a way for Iowans to leave wealth to their local communities and at the same time avoid federal estate taxes and the capital gains tax that force many wealthier citizens out of the state. Collectively, if Iowans would gift even 5% of their estates annually into endowment funds at community foundations, we would see more than $245 million each year reinvested into community-based endowment funds that would grow to even greater levels in time.
* Prepares Iowa for the golden age of philanthropy. The nation is about to embark on the Great Wealth Transfer; more dollars are going to transfer hands in the next 50 years – an estimated $41 trillion – than ever before. As the leading state with citizens 75 years and older, Iowa cannot afford to miss this wave.
* Provides a new opportunity for collaboration. Endow Iowa relies on existing infrastructure and community foundations (confirmed in compliance with national standards) to incubate funds and mentor communities on growing and managing endowments. These endowment funds may be unrestricted for broad community needs. They could be scholarships for local high school graduates, or designated for a specific area of interest in the community such as environment or economic development. The funds could be an endowment for a specific nonprofit organization or could be a donor advised fund allowing families to teach the value of giving to young Iowans. Businesses, individuals, families, organizations--- all coming together to build endowments for a collective future
