Kentucky offers a tax credit to local donors through the Endow Kentucky program and this year, the state is offering $1 million in tax credits to donors who establish an endowment fund or donate to an existing one with a certified community foundation, such as Central Kentucky Community Foundation.
The Endow Kentucky Tax Credit enables any business or individual to receive a state tax credit of up to 20 percent of a $50,0000 charitable gift to a permanent endowment fund that benefits Kentucky nonprofit organizations and charitable initiatives. This tax credit is up to $10,000 per taxpayer per year. Unlike tax deductions, tax credits are taken off a donor’s tax bill dollar for dollar, according to a news release. This credit is in addition to the federal charitable tax deduction. The Endow Kentucky Tax Credit can be carried forward for up to five years.
Central Kentucky Community Foundation works with people across the region on gifts eligible for the Endow Kentucky tax credit program. CKCF serves a 9-county region which includes Breckinridge, Grayson, Hardin, Hart, LaRue, Marion, Meade, Nelson and Washington counties.
“We have many generous philanthropists across our region working to enhance our communities and address local needs. With the help of the Endow Kentucky tax credit, these philanthropists can see more dollars go to local efforts than to the government,” said Davette B. Swiney, CKCF president and CEO in the release. “However, donors interested in taking advantage of the Endow Kentucky tax credit should not delay in applying. Tax credits have historically gone quickly.”
Tax credits are offered statewide, and credits are available on a first come, first serve basis.
“Through the Endow Kentucky tax credit, a better time has never existed to support charitable organizations and causes in our communities and receive a significant Kentucky state tax benefit for doing so,” Swiney said. “Central Kentucky Community Foundation already has several endowment funds established, but if you are thinking about a different way to enhance our community, we are here to help you with making your vision a reality.”
Applications for the Endow Kentucky Tax Credit are due to CKCF by June 28, 2019.
Gifts can be cash or appreciated stock and must be made to a qualified community foundation, such as CKCF. Donors can give to an existing endowment fund or may start a new fund to support an organization, cause or community initiative. Endowed funds are permanent funds which provide forever support for the charitable purpose.
Endow Kentucky was designed to enhance citizens’ quality of life through increased philanthropic activity by providing capital to community foundations; working to establish endowment funds that address community needs; and to encourage individuals, businesses and organizations to give to certified community foundations.
To download an Endow Kentucky tax credit application, go to https://revenue.ky.gov/Forms/ENDOW%20APP_1-1-18_FINAL.pdf or call 270-737-8393 to have one sent to you.