The Catholic Foundation of Southwest Iowa has an Endow Iowa Fund at the Community Foundation of Greater Des Moines which is a qualified community foundation that provides access to Endow Iowa Tax Credits. Endow Iowa allows taxpayers to receive a 25% Iowa tax credit in addition to normal federal charitable income tax deductions for certain charitable gifts.
Charitable Gifts Must be Made
- Through a qualified community foundation. Make a gift to the CFSWIA Endow Iowa Fund at the Community Foundation of Greater Des Moines online here.
- To a permanent endowment fund which limits distributions to 5%.
- For the benefit of one or more Iowa charitable causes.
- By individuals or businesses.
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.
- 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.
- Eligible gifts will qualify for credits on a first-come/first-serve basis until the yearly appropriated limit is reached. If the current available Endow Iowa Tax Credits have been awarded, qualified donors will be eligible for the next year’s Endow Iowa Tax Credits. The Community Foundation encourages donors to act early in the year to ensure they receive Endow Iowa credits.
- All qualified donors can carry forward the tax credit for up to five years after the year the donation was made.
- Endow Iowa Tax Credits allow donors to have even greater impact on their philanthropic interests in Greater Des Moines now and into the future.
We encourage donors to consult with tax advisers to review their individual circumstances.
|Amount of Gift||$1,000||$10,000||$100,000|
|Net Cost of Gift||$400||$4,000||$40,000|
|Endow Iowa Tax Credit*||$250||$2,500||$25,000|
|Net Federal Deduction**||$1,000||$10,000||$100,000|
|Federal Tax Rate***||35%||35%||35%|
|Federal Tax Savings****||$350||$3,500||$35,000|
|Total Tax Savings||$600||$6,000||$60,000|
* 25% of the charitable gift made to a permanently endowed fund at a community foundation. The maximum annual Endow Iowa tax credit per taxpayer is $227,590.
** 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)