News & Event
Are you a Kentucky taxpayer? Beginning July 1, the Commonwealth will again offer the Endow Kentucky Tax Credit to individuals and businesses that pay Kentucky taxes. This year, the available tax credits have doubled to $1,000,000.
CINCINNATI (May 23, 2016) — Are you a Kentucky taxpayer?
Beginning July 1, the Commonwealth will again offer the Endow Kentucky Tax Credit to individuals and businesses that pay Kentucky taxes. This year, the available tax credits have doubled to $1,000,000.
Endow Kentucky Tax Credit is a state tax credit of up to 20 percent of charitable gifts to endowed funds at a qualified community foundation, such as The Greater Cincinnati Foundation, for the benefit of Kentucky-based nonprofit organizations. (Maximum tax credit: $10,000 per individual or $20,000 per married couple.) The tax credit can be carried over for five years.
Your gift to The Northern Kentucky Fund of The Greater Cincinnati Foundation or to any other endowed GCF fund benefiting Kentucky nonprofits (see more below), including endowments you may establish to support your favorite organizations, may be eligible for this tax credit. Additionally, federal and state tax deductions are also available for these gifts.
GCF endowed funds are market-invested, permanent funds from which a distribution is directed every year, in perpetuity, to the selected beneficiary nonprofit. By supporting an endowment, your gift creates a permanent source of funding for that organization.
A short half-page application for these tax credits is required. Because we expect the cap will again be reached on the first day, you are encouraged to apply on July 1, 2016.
For more information on this tax credit and assistance with the application, contact Laura Menge at 513-768-6170 or firstname.lastname@example.org.
Get the full details of the Endow Kentucky Tax Credit [PDF]
In addition to The Northern Kentucky Fund, which supports nonprofits doing critical work in Boone, Campbell, and Kenton counties, The Greater Cincinnati Foundation manages many donor-created endowments. Among them are funds that benefit:
A gift of any size to these endowments may be eligible for the Endow Kentucky Tax Credit.
(CINCINNATI—May 10, 2017) The Greater Cincinnati Foundation works with Kentucky taxpayers on the Endow Kentucky program. The Endow Kentucky Tax Credit enables any Kentucky taxpayer (business or individual) to receive a state tax credit of up to 20% of a charitable gift to a permanent endowment fund at a local community foundation that benefits any Kentucky charity ( tax credit limit: $10,000 per taxpayer).
Unlike a tax deduction, a credit is taken off the tax bill dollar for dollar. So, if a donor has a Kentucky tax bill of $1,000, a donation of $5,000 through Endow Kentucky would eliminate that tax altogether (20% of $5,000 is $1,000). Federal and State charitable tax deductions are still available, and the tax credit can be carried forward for up to 5 years.
In 2017, $1,000,000 in tax credits are available beginning July 1, 2017, through June 30, 2018. Note that tax credits may be depleted in the first few weeks of July. Applications for fiscal year 2018, (which begins July 1, 2017) will be accepted through June 30, 2018, or until the credits run out, whichever comes first.
Gifts can be cash or appreciated stock, and must be made to a qualified community foundation, such as The Greater Cincinnati Foundation (GCF). Donors may also create a new endowment fund. Endowed funds are permanent funds which provide annual support to the named organization.
"We love Endow Kentucky because we can make gifts that will last and have an impact on Northern Kentucky for a long time. The state tax credit to incentivize these gifts is so helpful in building support for important organizations in our community. It's a win-win." — Jordan and Lauren Huizenga, Covington residents who support Children, Inc. through a GCF endowment
The Commonwealth of Kentucky offers a tax-smart way for Kentucky income taxpayers — both individuals and businesses — to provide sustained support to their favorite Bluegrass-based nonprofit organizations, including schools and religious institutions. The Endow Kentucky Tax Credit enables them to receive a state tax credit of up to 20 percent of a charitable gift to an endowment for any Kentucky nonprofit at a qualified community foundation such as Greater Cincinnati Foundation (GCF).
The window for applying for the 2020 fiscal year tax credits opens on July 1, but it’s a brief opportunity. The $1,000,000 in tax credits available statewide will again likely all be claimed in the first week, so it’s imperative to submit the application to the Kentucky Department of Revenue before July 7.
Since 2011, GCF has helped many of our Northern Kentucky donors secure the Endow Kentucky tax credit. Their gifts, totaling $4.3 million, have benefited 24 GCF endowments that permanently support Kentucky nonprofits, including:
Alliance for Catholic Urban Education
Donors also leverage the tax credit to support The Northern Kentucky Fund, GCF’s unrestricted endowment that provides ongoing grants in Kenton, Campbell and Boone counties.
The tax credit — taken off the donor’s tax bill dollar-for-dollar — is up to $10,000 per taxpayer, or $20,000 per married couple filing jointly. And state and federal tax deductions for the charitable gifts still apply. Gifts may be either cash or stock; long-term, appreciated stock gifts offer even greater tax savings. As always, consult your tax advisor for information specific to your situation.
It’s important to note that this isn’t just a tax credit for major gifts — donations of any size contribute to the lasting impact of endowed funds while simultaneously reducing your Kentucky income tax payment.
Contact your experienced staff members at GCF to further discuss the Endow Kentucky Tax Credit. Laura Menge, Philanthropic Advisor, can help you plan a qualifying gift (513-768-6170 or email@example.com).
As we wrap up 2019, we look back at our very impactful year of moving forward on many fronts! As your community foundation, Greater Cincinnati Foundation (GCF) is grateful for the support of and partnerships with our donors, nonprofit partners and community stakeholders to bring about a more equitable future for everyone in our region.