Community Foundation North Lee County

Endow Iowa Tax Credit Program

The Endow Iowa Tax Credit Program was created by the Iowa Legislature in 2003 to encourage philanthropy for the benefit of Iowa citizens. The program includes a tax incentive program administered by the Iowa Economic Development Authority. By applying for the Endow Iowa Tax Credits, individuals, businesses and financial institutions can receive a State of Iowa tax credit equal to 25% of their eligible donations to a permanently endowed fund at a qualified community foundation or component fund (including The Community Foundation North Lee County). This Iowa tax credit is in addition to normal federal charitable deductions. Please note: A donor may not take both a state charitable deduction and receive the state tax credit for the same donation.

Tax credits are offered on a first come, first served basis, with $6 million available annually statewide.

Giving through the community foundation to the causes you care about is rewarding—in more ways than one. Your gift creates lasting change in the community, and the Endow Iowa Tax Credit Program offers you generous tax incentives to make it easier for you to give more for less.

The Endow Iowa program is part of an effort to enhance philanthropic activity in the State of Iowa by encouraging contributions to community foundations. The program provides significant additional tax incentives for individual, business or organizational donors of community foundations.

Endow Iowa helps build Iowa’s Community Foundations

Endow Iowa strengthens communities through philanthropy. Endow Iowa endorses the importance of philanthropy and encourages all Iowans to invest in their communities through endowment funds. These funds are permanent resources that build the capacity for communities to become self-sufficient by providing financial support to charitable projects and community betterment programs now and in the future.

  • It helps develop local community leadership. Endow Iowa encourages leaders to mobilize community organizations and encourage charitable contributions. Community endowments help citizens promote, plan and prepare for the future and manifest their own community visions. More than 1,500 Iowa leaders are engaged in the community foundation movement annually.

  • It helps create philanthropic vehicles in communities of all sizes. Wealth often leaves Iowa’s communities and counties because there were no vehicles in place to receive gifts. Endow Iowa creates and provides the tools and vehicles to create endowment funds while strengthening existing community foundations. It is a low-cost way to positively impact Iowa forever.

What is a charitable endowment fund?

When you create a charitable fund through the Community Foundation North Lee County or contribute to an existing fund, you have the opportunity to benefit the community forever through a permanent endowment. In an endowment fund, the principal is maintained intact and your gift is invested over time. Earnings from the fund are used to make grants addressing community needs. The earnings from your current and future gifts to the fund provide a permanent source of community capital, helping do good work today and in the future.

Donors make a difference

Donors who endow their gifts can make a difference in their community during their lifetime and, at the same time, provide a gift that lasts forever. Grants will continue to be made in the name of the fund you establish or support so that your charitable wishes are preserved, even if an organization receiving grants ceases to exist in the future. Leaders of nonprofit organizations may also look to the community foundation to hold their organizations’ endowment because they know that having a constant source of funding helps them respond to emergency needs as well as plan for the future and sustain the good work they do.

Final Net Cost of Contributing $10,000

Amount of Gift

Endow Iowa Tax Credit

Net Federal Deduction

Federal Tax Rate

Federal Tax Savings

Total Tax Savings

Net Cost of Gift