Community Foundation advocates to retain Iowa charitable giving incentive

Thanks to advocacy on the part of the Quad Cities Community Foundation and community foundations across the state, a proposal to eliminate the longstanding Endow Iowa Tax Credit Program has been avoided, and the Iowa legislature has voted to retain the program. While some changes to the program were made to reduce the number of credits available from $6 million to $3.5 million, and the cap per donor was moved from $100,000 to $50,000, the value of the giving incentive and the compounding impact of endowments that benefit Iowa charitable causes will continue.

“While the size of the program has been reduced, retaining this powerful giving incentive is a win for donors, nonprofits, and the state of Iowa,” said Sue Hafkemeyer, the Community Foundation’s president and CEO. “This is also a moment to celebrate how community foundations and constituents advocate on behalf of charitable giving.

For Iowa taxpayers and Quad Cities Community Foundation donors, this means that the 2025 incentive can still be claimed, and credits will be available in 2026 as well. Those interested in taking advantage of the program are advised to gift as early in the year as possible, for the best chances of securing credits.

When news came that the tax program was at risk of being eliminated entirely, Community Foundation partners—from board members to affiliate staff—joined together to share their views and champion policy that would benefit the community.

“Retaining this policy is a reflection of what’s possible when partners and communities come together with a shared purpose,” said Community Foundation board chair Kent Pilcher. “It took collective voices and a unified commitment to preserve this powerful tool for charitable giving. The result speaks to the strength of our networks and relationships across the state.”

Community Foundation board member Lance Leslie offered an essential understanding of the proposed changes, dedicating his time and expertise to supporting the Community Foundation’s efforts.

“The Community Foundation is a trusted resource for local giving,” said Leslie. “With my fellow board members, we want to do the very best for our donors and community. That means using our time, knowledge, and networks to support policies that energize philanthropy and make giving more accessible. By speaking together with our friends and partners, I’m proud to say we did just that.”

Since its inception in 2003, the Endow Iowa Tax Credit has supported long-term philanthropic investments by offering a state tax credit to donors who contribute to qualified permanent endowments. The program has helped grow community foundations across Iowa, particularly strengthening rural counties by incentivizing charitable giving for rural causes. The Community Foundation of Cedar County—a Geographic Affiliate Fund of the Quad Cities Community Foundation—was another essential champion for retaining the tax credit.

“Iowa taxpayers interested in claiming an Endow Iowa tax credit should act quickly to take advantage of this opportunity,” said Anne Calder, Community Foundation vice president of development. “Our Development Team is ready to answer your questions and help you start the process of securing this credit.”

Reach out to the Community Foundation Development Team at development@QCCommunityFoundation.org or 563-326-2840 today to start the process.