Endow Iowa

The Endow Iowa program is part of an effort to enhance philanthropic activity in the State of Iowa by encouraging investments to new or existing community foundations. The program provides significant tax incentives for individual, business or organizational donors of community foundations.

Tax Credits to Donors

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 - 90 Iowa counties that do not have gambling entities. These funds will be deposited and distributed through Qualified Community Foundations or Community Affiliates that address countywide needs. It is anticipated that each eligible county's foundation will receive $50,000 - $60,000 per year.

The funding for this program will be handled by the Iowa Department of Revenue, in collaboration with the Iowa Department of Economic Development.

For more detailed information online visit the Iowa Department of Economic Development or contact IADG.

Endow Iowa provides significant philanthropic tax credits

02.13.2007 -  Endow Iowa Tax Credits!

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.  The legislature has authorized a total of $2,000,000 in Iowa tax credits annually through 2007, with approximately $3,000,000 in Iowa tax credits appropriated beginning 2008.

The charitable gifts must be made:

• To a permanent endowment fund (which can be a donor advised fund)
• In a "qualified" community foundation (the Greater Des Moines Community Foundation is a qualified community foundation)
• For the benefit of one or more Iowa charitable causes
• By individuals, corporations, or financial institutions

This is an exciting program that benefits both donors and charities.  Here is a brief approximation of the net after tax costs of establishing a fund:

All donors should consult with their tax advisors to review their individual circumstances.Gift of appreciated assets:  The net cost could be even lower if capital gain taxes and/or alternative minimum taxes are avoided.

Tax credits of 20% of the gifted amount are limited to $100,000 per person or $200,000 per couple if both are Iowa taxpayers.

Eligible gifts may qualify for credits on a first-come/first-serve basis until the appropriated limit is reached.  You should act sooner rather than later!

This is a great way to support your philanthropic interests in your community now and in the future. Please feel free to contact us for answers to any questions you may have on this new philanthropic opportunity created by the Iowa legislature.