Greater Cincinnati Foundation works with Kentucky taxpayers on the Endow Kentucky program.
What is the Endow Kentucky Tax Credit?
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 2019, $1,000,000 in tax credits are available beginning July 1, 2019, through June 30, 2020. Note that tax credits are expected to be claimed the first week of July.
Limited time opportunity
Applications for fiscal year 2020, (which begins July 1, 2019) will be accepted through June 30, 2020, or until the credits run out, whichever comes first.
What gifts qualify for the Endow Kentucky tax credit?
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.
Jumpstart your nonprofit’s endowment
Are you part of a nonprofit looking for a way to grow or start your organization’s endowment? Endow Kentucky is a great way to build your endowment.