State funds Endow Iowa tax credit program for 2021

Guest Column
Sherri Hunt
JCCF Coordinator

     On June 30, Gov. Kim Reynolds signed off on the 2021 state budget, which includes $6 million for the 2021 Endow Iowa tax credits. As of July 13, $3 million of those tax credits had already been spoken for by generous Iowa donors.

     “This means not only is it important to make your gift, but also to fill out and return your Endow Iowa application as quickly as possible,” said Sherri Hunt, Jones County Community Foundation (JCCF) Coordinator.

     A gift of $1,000 to an endowment fund costs a donor in the 35 percent tax bracket just $487.50 after the Endow Iowa tax credit and the federal charitable deduction. Starting in 2020, taxpayers who do not itemize will be allowed to deduct up to $300 in charitable donations.

     The Endow Iowa 25 percent tax credit applies to gifts of $50 or more made to endowed funds at accredited communication foundations like the Community Foundation of Greater Dubuque.

     “Thanks to the JCCF’s affiliation with Greater Dubuque, gifts to our endowed funds are also eligible for the 25 percent credit,” said Hunt. “We hold endowments for non-profits throughout Jones County and can accept most any asset, including gifts of cash, stock, insurance, gifts of grain, and charitable IRA rollovers.”

     Credits are given on a first-come, first-served basis until remaining 2021 tax credits are claimed. At that time, qualified donors will be eligible and first in line for 2022 credits. Qualified donors can carry forward the tax credit for up to five years after the year the donation was made.

     In 2020, JCCF endowment funds paid out $77,160 to support non-profits across the region. These funds are invested and pay out annually to the designated non-profits, providing a reliable source of income to sustain organizations’ operations forever.

     The State of Iowa is recognized as a national leader in community-based philanthropy, due in large part to programs focused on increasing charitable activity to enhance quality of life for Iowans, support non-profit infrastructure, and meet local need. The Endow Iowa Tax Credit program is implemented through local community foundations across the state.

     Philanthropy is an integral part of economic and social landscape in Iowa, building social capital, funding vital services, and solving the toughest challenges. The impact of these programs can be seen in after-school programs, innovative community leadership, food pantries, transportation solutions, and countless other ways.

     “These funds help to sustain the crucial missions of non-profits in Jones County so they can continue to enrich lives in our region forever,” said Hunt. “Each fund is unique to a donor’s dreams for the future of our region.”

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