2023 Endow Iowa Updates

May. 2, 2023 Endow Iowa

For nearly 20 years, the Endow Iowa Tax Credit has been a valuable tool for making investments in the future of Iowa causes and communities. This innovative, bipartisan piece of legislation has resulted in tremendous impact. From 2003 – 2021, Iowans have contributed more than $336 million in permanent endowment gifts to Iowa causes and communities, through more than 43,500 donations. 

This tremendous generosity has led to tremendous demand for the program. Over the course of the past five years, Endow Iowa Tax Credits are often exhausted a year in advance of becoming available and many donors have been added to a waitlist to receive future credits.  

In order to keep the Endow Iowa Tax Credit working for Iowans, the Iowa Economic Development Authority (IEDA), which oversees the Endow Iowa Tax Credit, has announced changes to Endow Iowa Tax Credit program effective immediately. 

2023 Endow Iowa Tax Updates and Changes 

  • The waitlist process, previously administered by IEDA, will be discontinued on July 1, 2023. All applications that are currently on waitlists will not be affected by this change. Donors who apply for the Endow Iowa Tax Credit prior to June 30, 2023 will continue to be placed on the 2024 waitlist. In order process your gift and Endow Iowa application before the system closes, donors are encouraged to make Endow Iowa qualified gifts by June 15, 2023. 

  • IEDA has provided guidance that community foundations will not be able to accept or submit Endow Iowa applications on behalf of donors from July 1, 2023 until IEDA re-opens the application. We do not know the date at which the application will open at this time but will let you know as soon as we learn details from IEDA.  

  • Beginning January 1, 2023, tax credits of 25% of the gifted amount are limited to $100,000 in tax credits per individual for a gift of $400,000 or $200,000 in tax credits per couple for a gift of $800,000 if both are Iowa taxpayers. No minimum gift amount is required to qualify for Endow Iowa Tax Credits.  

How We Can Help 

  • We recognize these changes have implications as you plan your 2023 charitable giving. Contact our team to learn more about the changes and how we can maximize your giving through Endow Iowa prior to June 15, 2023. 

  • We know how critical Endow Iowa is for the continued success of our state and how it elevates the generosity of Iowans. To grow this impact, a bill has been passed by the Iowa State House of Representatives that includes a one-time additional appropriation of $7 million for 2023.

Legislative Update as of May 2, 2023

The bill to strengthen Endow Iowa and the County Endowment Fund Program, House File 710, was passed unanimously by the House of Representatives and proceeded to the Senate Ways and Means Committee where an amendment to the bill was passed. The amended bill includes: 

  • a one-time $7 million appropriation to Endow Iowa from the sports wagering receipt fund; and
  • a legislative fix for an issue that was caused when last year’s tax bill passed affecting Endow Iowa donors on the waitlist that gave above the new aggregate cap allocation.

HF 710 is now eligible for debate on the Senate floor. If you would like to join us in sharing your experience in leveraging giving to Iowa causes through Endow Iowa, contact us. We are happy to provide materials as you connect with your elected officials. 

Thank you for your continued partnership with the Community Foundation of Greater Des Moines. The success of the Endow Iowa Tax Credit program is a testament to generosity of Iowans and your commitment to make our state better forever. Please reach out with any questions, we are here to help.