Kentucky taxpayers who give lasting support to Kentucky nonprofits deserve some credit! The Endow Kentucky Tax Credit program offers a state tax credit of up to 20% for gifts made to endowments held at a qualified community foundation for the benefit of Kentucky public charities, including schools and religious institutions.
The Commonwealth is one of only a few states that offer this special tax incentive for charitable giving. The tax credits are available to both Kentucky-taxpaying individuals and businesses.
“At Grove Transportation Services, Inc., we recognize our responsibility to support our local community. The hard work our team exhibits is for the good of our customers, as well as the charities to which we are blessed to give,” says Warren Grove, Personnel Manager at Grove Transportation Services, Inc. “Endow Kentucky provides us the opportunity to amplify our giving to charitable organizations in our backyard. The added tax savings makes this a win-win!”
Beginning July 1, $1 million of state tax credits will be available until exhausted – typically within the first week.
About Endow Kentucky:
- State tax credits may be taken against individual income tax, corporate income tax, and limited liability income tax.
- The tax credit is in addition to federal and state tax deductions for qualified charitable gifts.
- Tax credits may be carried forward for up to five years.
- Tax credits for individuals and businesses may be up to $10,000 (for endowment gifts of up to $50,000). Married couples filing jointly may receive tax credits of up to $20,000 (for endowment gifts of up to $100,000).
- There is no minimum gift amount.
- Gifts may be cash or stock.
- Only gifts to endowments held at qualified community foundations are eligible.
- Before the gift is made, a single-page application must first be filed with and approved by the Kentucky Department of Revenue. Applications, found at revenue.ky.gov, should be submitted July 1 – 7.
Since 2011, Greater Cincinnati Foundation (GCF) has helped donors leverage this tax credit through gifts of more than $8 million to 34 GCF endowments supporting Kentucky nonprofits. These endowed gifts provide a permanent stream of funding for organizations and everlasting support for the people they serve.
“We help donors make enduring contributions throughout the Northern Kentucky community. The Endow Kentucky Tax Credit offers a smart strategy to increase support to the causes donors care about, which is the heart of GCF’s mission. We can confidently walk you, your client, or your business through the tax credit process from start to finish, and work to secure these credits for the longstanding benefit of our communities,” says Laura Menge, Senior Philanthropic Advisor at GCF.