Endow Iowa Tax Credits: A Great Way to Stretch Your Clients' Charitable Dollars

Aug. 29, 2016

Endow Iowa Tax Credits: A Great Way to Stretch Your Clients' Charitable Dollars

By: Wade Den Hartog, CAP®, MBA
Director of Charitable Partners, Community Foundation of Greater Des Moines
This article was originally published in the July/August issue of Iowa CPA. 

As you meet with clients to analyze and discuss their financial goals in the second half of 2016, consider an opportunity for them to support the causes they care about while receiving a unique tax credit on the gifts. Iowa community foundations, including the Community Foundation of Greater Des Moines, provide exclusive access to the Endow Iowa Tax Credit.  Giving through the Endow Iowa program allows Iowa taxpayers to receive a 25% Iowa state tax credit, in addition to the federal charitable income tax deduction, for charitable gifts.   

Endow Iowa provides unique opportunities to meet philanthropic goals while receiving maximum tax benefit. Given the popularity of Endow Iowa, and the limited number of tax credits still available to your clients in 2016, now is the time to make a gift that gives back. Highlights of Endow Iowa include:

  • A variety of gifts qualify for Endow Iowa Tax Credits including cash, real estate, grain, 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, assuming both are Iowa taxpayers.

  • Eligible gifts will qualify for credits on a first-come/first-serve basis until the yearly appropriated limit is reached.  If the current available Endow Iowa Tax Credits have been awarded, qualified donors will be eligible for the next year's Endow Iowa Tax Credits.  The Community Foundation encourages donors to act as early in the year as possible to ensure receipt of credits as soon as possible.
  • All qualified donors can carry forward the tax credit for up to five years after the year the donation was made.

  • Endow Iowa Tax Credits allow donors to have even greater impact on the causes they care about both now,  and into the future, by stretching dollars donated to Iowa charities.

Endow Iowa Tax Credits available for 2016 are running low so keep the program top of mind as you assist clients in meeting their financial and philanthropic goals.  If you have questions, or need more information about Endow Iowa, please feel free to contact Wade Den Hartog, the Community Foundation’s director of charitable partners, at denhartog@desmoinesfoundation.org or (515) 883-2626.