Story County Community Foundation

Endow Iowa allows taxpayers to take a 20% Iowa tax CREDIT in
addition to the normal state and federal charitable income tax deductions
for certain charitable gifts made to a community foundation or a fund of a
community foundation. The legislature has authorized over $3,000,000 in
Iowa tax credits in 2008 on a first come/first serve basis.

This is an ongoing program. If an eligible gift is made to a
community foundation after the tax credits have been used for a
given year, the credit will be issued in January of the following
year to be used for that year's credits.

The charitable gifts must be made:

—to a permanent endowment fund (which can be a donor advised fund);
—to the Story County Community Foundation or a similar "qualified"
community foundation for the benefit of one or more Iowa charitable
causes;
—between January 1 and December 31 or the year;
—by individuals, corporations, or financial institutions.
And, the tax credit:
—is 20% of the gift amount and is limited to $100,000 per taxpayer which
is the maximum credit on a gift worth $500,000. Funds can be started at
the Story County Community Foundation for as little as $10,000 (less if
the situation merits).
—cannot be used against prior year's taxes. Any excess credit not used
in the authorized tax year may be carried forward for up to five additional
years.

Here's an example of how this amazing new legislation can benefit you.
Let's say that you would like to benefit several Story County charities. You
make, for example, a $50,000 gift of cash or securities to the Story
County Community Foundation in a permanent endowment fund for the
benefit of those particular nonprofits. You make this gift in May, 2008.
You may be eligible for a 20% Iowa tax credit -- $10,000 in this example
-- on top of the federal and state income tax deductions for charitable
gifts. Each year thereafter, the specified nonprofits can receive up to five
percent of the fund balance from your newly created fund. Alternatively,
your fund could be set up as a donor advised fund and you could advise
on gifts of up to 5% of the fund balance at the end of each calendar year.

The Iowa Department of Economic Development will issue tax credit
letters to taxpayers. Eligible gifts made before December 31st of the
year may qualify for credits on a first-come/first-serve basis until the limit
is reached for that year.

Please feel free to call 515-232-5445 or email storycounty@mchsi.com
to ask any questions you may have about this wonderful philanthropic
opportunity created by the Iowa Legislature.