Endow Iowa Tax Credit Program Receives Additional $7 Million for 2023, CFNEIA Encourages Giving to Local Charitable Causes

CFNEIA

July 25, 2023

The Endow Iowa 25% state tax credit program received an additional $7 million in funding for 2023 thanks to legislation passed and signed into law during the 2023 legislative session, creating a total of $13 million in credits available. This additional funding eliminates the program waitlist, allowing Endow Iowa to continue to work for generous Iowans. This popular program, administered by the Iowa Economic Development Authority (IEDA) and offered through accredited Iowa community foundations like the Community Foundation of Northeast Iowa (CFNEIA), is a valuable tool in investing in Iowa causes and communities. Last year alone, Endow Iowa funds at Iowa community foundations granted $24 million to nonprofits and charitable causes in the state.

IEDA issued guidance to Iowa community foundations on how these additional dollars impact Endow Iowa and what it means for donors. Here are key points for donors to best plan their 2023 charitable giving:

• Families and individuals who were on the 2024 waitlist will receive the 2023 tax credit.
• As of July 24, $612,955 credits remain for 2023, and these credits will be distributed on a first come, first served basis.
• Once 2023 Endow Iowa credits are expended, no applications will be accepted for the remainder of the year.
• Donors who make Endow Iowa gifts after the 2023 credits are gone may apply for 2024 credits beginning January 2, 2024. Applications must be submitted within 12 months of the date of the donation.
• Community foundations will not be able to accept or submit applications on behalf of donors until IEDA re-opens the application in 2024.

“Thank you to our state legislators and IEDA for making and implementing the changes to the Endow Iowa program. The Endow Iowa tax credit is unique to our state and helps generous people do even more for our communities,” said Kaye Englin, president and CEO of the Community Foundation of Northeast Iowa and Iowa Council of Foundations’ board secretary.

With less than one million tax credits remaining for 2023, CFNEIA encourages Iowans to take advantage of the 25% state tax benefit through the Endow Iowa tax credit program by considering a gift to a local cause or nonprofit organization they care about. To qualify to receive the 25% tax credit, gifts must be made to a permanent endowment fund benefiting one or more Iowa charitable causes and be held at an accredited community foundation. The Community Foundation of Northeast Iowa is a nationally accredited foundation with 22 affiliate foundations across a 20-county region. A list of Endow Iowa eligible funds held with CFNEIA can be found at www.cfneia.org/endowiowaeligible.

The 25% Endow Iowa tax credit is in addition to the normal federal deduction for a charitable gift. The Community Foundation recommends donors consult with their tax advisor to review their individual circumstances in order to maximize tax incentive opportunities.

For each public tax credit dollar allocated, four private philanthropy dollars are leveraged. Since the inception of the Endow Iowa Tax Credit program in 2004, Iowa community foundations have leveraged more than $359 million in permanent endowment fund gifts. The contributions were made through 45,592 donations. The beauty of endowment funds is that these dollars will continue to grow in perpetuity, improving lives for Iowans both now and for generations to come.

More information about the Endow Iowa Tax Credit Program can be found at www.cfneia.org/endowiowa. Questions can be directed to Sloan Alberhasky, manager of donor relations and data services with the Community Foundation of Northeast Iowa, at 319-243-1365 or salberhasky@cfneia.org.