County Endowment Fund Program
The County Endowment Fund Program, originally created by HF 2302, is separate from the Endow Iowa Tax Credit Program. Through the County Endowment Fund Program, a percentage of the state's gaming tax revenue is distributed to community foundations in the 84 counties that do not hold a state-issued gaming license. The community foundation organizations then grant 75 percent of those funds to charitable projects within their counties and place the remaining 25 percent in a permanent endowment fund, which is intended to attract other donations and provide a source of permanent funding for charitable projects within the county. Fifteen (15) counties are not eligible for the funding because state-licensed gaming facilities are located in those counties.
The Program is administered by the Iowa Economic Department Authority (IEDA) which works closely with the Iowa Council of Foundations (ICOF) in coordinating the program and determining the community foundation recipients of the funding.
For more detailed information visit the Iowa Economic Development Authority website or contact IADG.
The Endow Iowa program is part of an effort to enhance philanthropic activity in the State of Iowa by encouraging investments to new or existing community foundations. The program provides significant tax incentives for individual, business or organizational donors of community foundations.
Endow Iowa allows taxpayers to take a 25% Iowa tax CREDIT on their Iowa state return in addition to the normal federal charitable income tax deductions for certain charitable gifts. Gifts are limited to $300,000 in tax credits per individual for a gift of $1.2 million or $600,000 in tax credits per couple for a gift of $2.4 million if both are Iowa taxpayers. Presently $6,000,000 in Iowa tax credits is awarded annually.
The charitable gifts must be made:
- By cash, real estate, appreciated securities and outright gifts of retirement assets.
- Through a "qualified" community foundation (the Community Foundation of Greater Des Moines is a qualified community foundation).
- To a permanent endowment fund which limits distributions to 5%.
- For the benefit of one or more Iowa charitable causes.
- By individuals, corporations, or financial institutions.
Eligible gifts may qualify for credits on a first-come/first-serve basis until the yearly appropriated limit is reached. If the current available Endow Iowa Tax Credits have been awarded, qualified donors will be eligible for the next year's Endow Iowa Tax Credits. The Community Foundation of Greater Des Moines encourages donors to act early in the year to ensure they receive Endow Iowa credits. Consult with your tax advisor to review individual circumstances.