What is the Endow Kentucky Tax Credit?
The Endow Kentucky Tax Credit enables Kentucky income taxpayers (individuals and businesses) to receive a state tax credit of up to 20 percent of a charitable gift to an endowment at a qualified community foundation for the benefit of Kentucky-based nonprofit organizations. It’s a tax-smart way to provide sustained support to your favorite Kentucky nonprofits, including schools and religious institutions.
GCF endowments provide a permanent stream of funding to nonprofits – annual grants distributed in perpetuity that grow with the fund – making them a perfect vehicle for donors’ legacy gifts to favorite organizations and causes.
Laura S. Menge, CAP®
Sr. Philanthropic Advisor
Since 2011, GCF has helped many of our Northern Kentucky donors secure the Endow Kentucky tax credit. Their gifts, totaling over $7 million, have benefited 30 GCF endowments designated to permanently support specific Kentucky nonprofits, including:
- BAWAC, Inc.
- Brighton Center
- Center for Great Neighborhoods
- Children’s Home of NKY
- Covington Partners
- Diocesan Catholic Children’s Home (DCCH)
- Emergency Shelter of Northern Kentucky
- Gateway Community and Technical College
- Learning Grove
- Life Learning Center
- Parish Kitchen
- St. Elizabeth Healthcare
- St. Elizabeth Hospice
- United Way, Northern Kentucky
Or donors can support the Northern Kentucky Fund of the Greater Cincinnati Foundation, which broadly supports GCF investments in NKY.
Endow Kentucky Details
- Before making a gift, the donor must file an application with the KY Department of Revenue for preliminary tax credit approval.
- Within 30 days of the approval letter, the donor must make the gift to the GCF endowment.
- Within 10 days of receipt, GCF will confirm the gift with the Dept., which will then issue a final approval letter to the donor.
The tax credit (up to $10,000 per taxpayer; $20,000 per married couple filing jointly) may be taken against individual income tax, corporation income tax or limited liability income tax.
The tax credit is taken off the state tax bill dollar-for-dollar, and federal and state tax deductions still apply.