Endow Iowa Tax Credit
We are privileged to live in a generous state with citizens who have made investments in the quality of life we enjoy today through charitable giving. To continue this proud tradition of giving, the Community Foundation is proud to be able to offer the Endow Iowa Tax Credit, a 25% state tax credit on qualified gifts.
"The Endow Iowa program is a testament to the foresight and collaborative spirit of our legislative leaders, the community foundation network and our state's donor community. They recognize that Iowans are highly motivated to help future generations build upon the success we enjoy in our state today."
- Joanie & Dan Houston
How Does Endow Iowa Work?
- State legislators passed innovative legislation to create the Endow Iowa Tax Credit program in order to promote gifts to qualified permanent endowments and provide sustainable support to Iowa nonprofits.
- Endow Iowa Tax Credits are only available to qualified gifts made through a qualified Iowa community foundation, like the Community Foundation of Greater Des Moines and our affiliates.
- A variety of gifts qualify for Endow Iowa Tax Credits including cash, real estate, farmland, 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 if both are Iowa taxpayers. No minimum gift amount is required to qualify for Endow Iowa Tax Credits.
- Effective January 1, 2023, the maximum annual credit allowance will be reduced to $100,000 per taxpayer and $200,000 per couple (from $300,000 per taxpayer and $600,000 per couple). Credits are not transferable or refundable.
- Endow Iowa Tax Credits are available on a first-come/first-serve basis until the yearly appropriated limit is reached. If the current year’s tax credits have been exhausted, qualified donors are eligible for the next year’s Endow Iowa Tax Credits.
- All qualified donors have five years to use their Endow Iowa Tax Credits.
- Effective August 28, 2018, taxpayers who receive Endow Iowa Tax Credits and itemize on their federal tax returns will be required to reduce their federal charitable deductions by the value of any state tax credit received. There is an opportunity to deduct the full value of the gift if you have not reached the $10,000 state and local taxes (SALT) Cap. We recommend consulting with your tax professionals.
- For example, a taxpayer that makes a $1,000 charitable donation to Endow Iowa would receive a $250 (25%) state tax credit. When filing federal taxes, the taxpayer cannot deduct the entire $1,000 charitable donation like in the past, but only the difference between the donation and the state tax credit, or $750 in this example.
Endow Iowa Tax Credit Illustration
|Endow Iowa Tax Credit (25%)
|Net Federal Deductible Gift
|Federal Tax Savings (37%)
|Net Cost of Gift
* For ease of illustration, the examples above do not factor in the federal/state net tax effect. Examples assume the donor is in the 37% tax bracket and plans to claim a charitable deduction on the federal tax return.
Create a Legacy
Our team of charitable giving experts is here to learn about the ways in which you want to provide sustainable support to the Iowa causes and communities you care about through charitable giving.
Give a Gift
A variety of gift types qualify for the Endow Iowa Tax Credit including cash, real estate, farmland, appreciated securities and outright gifts of retirement assets. We will work with you and your professional advisors to determine the gift that best meets your giving and financial goals.
Choose an Endow Iowa Fund
To qualify for Endow Iowa Tax Credits, you can open your own Endow Iowa qualified charitable giving fund or you can give to any of our already established Endow Iowa funds.