The Endow Iowa tax credit program allows taxpayers to receive an Iowa state income tax credit equal to 25 percent of the value of your gift for certain endowed charitable gifts. These gifts are not eligible for a state income tax deduction, although they do qualify for the federal charitable deduction. The Greater Cedar Rapids Community Foundation is a qualified community foundation that provides access to Endow Iowa tax credits.
Gifts That Give Back – How It Works
- A variety of gifts qualify for Endow Iowa tax credits including cash, real estate, appreciated securities and outright gifts of retirement assets.
- Gifts can be made to an existing permanent endowed fund or one that you establish. The gift must benefit one or more Iowa charitable causes.
- Tax credits equal to 25 percent of the value of the gift are limited to $100,000 per individual or $200,000 per couple if both are Iowa taxpayers. This is a reduction from the former limit of $300,000 per taxpayer (or $600,000 per couple) that was made beginning January 1, 2023.
- All qualified donors can carry forward the tax credit for up to five years after the year the credits are awarded.
- Endow Iowa tax credits allow donors to have even greater philanthropic impact.
- We encourage donors to consult with their tax advisor to review their individual circumstances.
Income Tax Savings and Net Cost of Charitable Gifts
With Endow Iowa, contributions to the Community Foundation cost donors less. Here is what the gift could mean for you:
| Gift Amount | $1,000.00 | $10,000.00 | $100,000.00 | $400,000.00 |
| Endow Iowa Tax Credit (25%) | (250.00) | (2,500.00) | (25,000.00) | (100,000.00) |
| Net Federal Deductible Gift | $750.00 | $7,500.00 | $75,000.00 | $300,000.00 |
| Federal Tax Savings (37%) | (277.50) | (2,775.00) | (27,750.00) | (111,000.00) |
| Net Cost of Gift | $472.50 | $4,725.00 | $47,250.00 | $611,000.00 |
* 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.
To help understand the potential tax savings for contributions made through Endow Iowa, visit the Endow Iowa tax credit calculator to enter a gift amount for an estimate of the charitable deduction.
For more information about Endow Iowa and the availability of tax credits, contact Christi Smeed at 319.774.2377 or christi.smeed@gcrcf.org.
