Endow Kentucky Tax Credits Amplify Giving

The Commonwealth Offers Special Tax Savings for Charitable Endowment Gifts

Kentucky taxpayers who give philanthropic support in Kentucky deserve some credit! The Endow Kentucky Tax Credit program offers a state tax credit of up to 20% for charitable gifts made to endowments held at qualified community foundations for the benefit of Kentucky nonprofits and schools.

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.

Beginning July 1, $1 million of state tax credits will be available until exhausted – typically within the first week.

About the Endow Kentucky Tax Credit:

• 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).
• Only gifts to endowments held at qualified community foundations are tax-credit eligible.
• Endowment gifts may be cash or stock. There is no minimum gift amount.
• 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 capture $1.7 million in tax credits through gifts of more than $9 million to 36 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 walk you, your client, or your business through the tax credit process from start to finish, working to secure these credits for taxpayers while also securing longstanding support for our communities,” says Laura Menge, Senior Philanthropic Advisor at GCF.

Learn more about the Endow KY Tax Credit or contact Laura Menge at 513-768-6170 or laura.menge@gcfdn.org.