Giving through the Community Foundation of Greater Muscatine to the causes you care about is rewarding-in more ways than one. Your gift creates lasting change in Muscatine County, and the Endow Iowa Tax Credit Program offers generous tax incentives to make it easier for you to give more for less. Since our Community Foundation is qualified by the Iowa Department of Economic Development, donors who give to one of our permanently endowed funds are eligible to receive 25% tax credits for their gifts. Community members who give are also able to take advantage of the tax credits in conjunction with federal tax deductions. The Endow Iowa Tax Credit is awarded on a first-come, first-served basis for gifts made to a permanent endowment fund, established for the benefit of Iowa charitable causes. The tax credits can be claimed by individuals, businesses, or financial institutions. Since 2003, more than $115 million has been invested in community foundations through Endow Iowa, improving residents’ lives both now and for years to come.
Donors to endowments may download the 2019 application for gifts made. 2019 Endow Iowa Tax Credit Application.
The program is administered by the Iowa Economic Development Authority and more information is available on their website.
What might Endow Iowa Tax Credit mean for you? Click here to calculate a sample illustration of your own.
Here is what the gift could mean for you:
|Amount of Gift||$10,000|
|Endow Iowa Tax Credit||$2,500*|
|Net Federal Deduction||$10,000**|
|Federal Tax Rate||35%***|
|Federal Tax Saving||3,500****|
|Total Tax Savings||$6,000|
|Net Cost of Gift||$4,000|
* 25% of the charitable gift made to a permanently endowed fund at a community foundation – maximum annual Endow Iowa tax credit per taxpayer is $232,147.25.
** The entire amount of the gift is deductible on federal taxes- not state.
*** Individual marginal tax rates vary.
**** Assumes that individual taxpayer utilizes Schedule A (itemized deductions on their federal tax return)
How will I receive my tax credit?
The process for applying for a tax credit is simple. Once your donation to an Endowment is received by the Community Foundation, they will prepare an application form for you to complete and sign. The application will then be sent to the Iowa Department for Economic Development for approval. You will be notified by mail of the status of your tax application.
The Endow Iowa Tax Credit Form is available here.
Below is a listing of tax credit eligible endowment funds held at the Community Foundation of Greater Muscatine.