Endow Iowa State Tax Credit
Endowed vs. Non-Endowed Funds
Endowed funds are intended to be preserved forever, with a portion of the earnings available for spending. It is a permanent savings account that grows through investment and financial contributions from donors. Distributions from the fund are capped at 5% per year and are used to provide stability and long-term support to organizations, creating an even bigger impact in the future!
Non-endowed funds are invested for growth in the same way as an endowed fund, but funds are not permanent, and they are immediately available for distribution.
Endow Iowa State Tax Credit
When you make a gift to one of our permanently endowed funds, it will cost you far less thanks to Iowa’s innovative Endow Iowa 25% State Tax Credit! As a nationally accredited community foundation, we have been proud to offer this program, which gives donors who give to a permanently endowed fund at a qualified community foundation an opportunity to receive a 25% state of Iowa tax credit for their gift.
The state of Iowa offers $6 million in Endow Iowa Tax Credits each year to promote giving to permanent endowments that benefit organizations and citizens in Iowa. This program is producing substantial and sustainable support to nonprofits in Iowa. You can take advantage of this opportunity by:
- Establishing an endowment fund to achieve your personal charitable goals
- Giving to one of our existing endowment funds
2023 Updates to Endow Iowa State Tax Credit
Due to the growing popularity of the Endow Iowa 25% State Tax Credit, the Iowa Economic Development Association (IEDA) is making changes to the program for 2023. This includes a new maximum tax credit and a pause on the credit application process in order to clear the current wait list.
Here’s what you need to know as you consider a gift to an endowed fund:
- IEDA will not accept Endow Iowa applications after June 30, 2023. Donors who apply for the tax credit prior to that date will continue to be placed on the waitlist. We will file the paperwork with the state for you.
- The program will not reopen until all applicants on the wait list have been awarded their tax credit.
- The maximum tax credit has been lowered to $100,000 per taxpayer (or $200,000 per couple).
If you have considered taking advantage of the Endow Iowa 25% State Tax Credit, we encourage you to make your gift and submit your application prior to June 30, 2023 to be placed on the waitlist.
As new information is available regarding the program, we will provide updates to you. If you have questions or would like to learn more about this program, please contact us any time. Thank you for investing in the city we love!
You can advocate for the Endow Iowa Tax Credit program! See more information here.
When you give to one of our endowed funds, you are not only helping Waterloo now—you’re investing in the future of the city we love!