Tax Benefits

shutterstock_109030091.jpg

Participating in generosity through the Quad Cities Community Foundation is rewarding (and we’re not just talking about that awesome feeling you get when making a gift to a cause you care deeply about). There are also a number of tax benefits for donors who give through the Community Foundation, including capital gains savings on gifts of appreciated assets and gifting through IRA’s.

We are committed to helping you maximize the tax benefits available to you when you give. The easiest way to learn more is to give us a call to talk about the benefits that fit your unique situation, but below, we offer a glimpse into some of the benefits available to donors.

25 percent tax credits through Endow Iowa

The Endow Iowa Tax Credit Program offers contributors who live in Iowa and give through the Community Foundation generous tax incentives to make it easier for you to give more for less.

The program was established to encourage building permanent endowments to benefit communities all across Iowa. Iowa taxpayers may apply for the tax credit if they make a gift to permanently endowed fund that supports charitable activities in Iowa. Here’s some specifics:

  • Tax credits are for 25% of the gifted amount.

  • Individuals are limited to $300,000 in tax credits per year for a $1.2 million gift and a couple is limited to $600,000 in tax credits per year for a $2.4 million gift (if both are Iowa taxpayers).

  • An individual or a business creating individual tax liability (partnership, LLC, S Corp., estate or trust) is eligible to receive a tax credit as long as they pay taxes in Iowa. A “C” Corporation may also receive a tax credit under this program.

  • You can claim the tax credit on your Iowa income tax return only.

  • If you cannot use the entire credit this year, you can carry it over for up to five years. The tax credit is not transferable.

  • If an Iowa tax credit is received for a gift, no Iowa income tax deduction for the same gift is allowed.

Endow Iowa Tax Credits are claimed fast, and for 2018, the tax credits are already spoken for. Applications submitted after the 2018 credits were fully claimed are placed on a waiting list in the order applications are received to request a 2019 tax credit.


What about Illinois?

Illinois has similar legislation pending to introduce Endow Illinois. While it has not yet passed, it does have strong and growing support in the legislature. We will keep you posted on the bill’s progress.