Endow IA Tax Credit

Innovative opportunities for charitable giving are now available to donors through a program created by Iowa legislation in 2005 called the Endow Iowa Tax Credit Program.

Endow Iowa was created to enhance the quality of life for the citizens of this state through increased philanthropic activity by encouraging contributions from individuals, businesses, and organizations to new and existing community foundations. Click on this link for our Endow Iowa Flier. 

With Endow Iowa, you can give and receive.

When you donate to a permanently endowed fund at a qualified community foundation, you’re not only helping your neighbors today—you’re building a stronger community tomorrow. And while that in itself is rewarding, with Endow Iowa, you’ll also get back for giving. 

With Endow Iowa, you’re eligible to receive a 25% tax credit on your State of Iowa income taxes. This tax credit is in addition to any federal tax benefits for which you may qualify.

Charitable gifts must be made:

• 1.) To a “qualified” community foundation (the Siouxland Community Foundation and its affiliate community foundations are “qualified” community foundations that meets National Standards).
• 2.) To a permanently endowment fund (existing or newly established) within the Siouxland Community Foundation. You may start an endowment fund for a minimum of $5,000.
• 3.) For the benefit of one or more Iowa charitable causes.
• 4.) By Iowa income taxpayers – individuals, corporations, or financial institutions. 

The Tax Credit:

• 1.) Timing: The credit cannot be used for prior-year taxes. Iowa taxpayers may claim the credit in the year they receive the tax credit letter from the Iowa Economic Development Authority. Any unused credit may be carried forward for up to five years. Applications must be submitted within 12 months of the gift date.

  2.) Availability: Credits are issued on a first-come, first-served basis until the yearly appropriation limit is reached. If the year’s credits are exhausted, qualified donors may be placed on the Siouxland Community Foundation’s internal waitlist for up to 12 months to prepare for the next year. Placement on the waitlist does not guarantee eligibility.

  3.) Credit Amounts Starting Jan 1, 2026: The credit is 25% of your gift, with limits of $50,000 per individual (for gifts of $200,000 or more) and $100,000 per couple (for gifts of $400,000 or more) if both spouses are Iowa taxpayers.

  4.) Federal Deduction Considerations: Taxpayers who itemize on federal returns must reduce federal charitable deductions by the amount of any state tax credit received. For example, a $1,000 gift generating a $250 state tax credit can only be deducted by $750 on the federal return. There may be opportunities to deduct the full gift value if you have not reached the $10,000 SALT cap. We recommend consulting your tax professional.

• With Endow Iowa, donations to community foundations cost donors less.

Example Tax Savings (based on a 35% federal tax rate)