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ENDOW IOWA - A Tax Credit Program
By Daniel R. Baldwin,
President of the Greater Cedar Rapids Community Foundation
Kevin Cullum and the Board of
Directors of Camp Wyoming have done a wonderful job of building strong
programs. Now there is a tool available to help build an endowment that
will generate important annual income, ensuring for years to come the
level of quality programs the campers and their families have come to
expect from Camp Wyoming.
Camp Wyoming was recently the
beneficiary of a fund established at The Greater Cedar Rapids Community
Foundation. The donor who created this fund was able to participate in
the Endow Iowa tax credit program while helping build the Camp’s
endowment. Because Endow Iowa utilizes Iowa income tax credits, the
program can be safely described as the greatest incentive yet for giving
to endowed funds.
Here’s how Endow Iowa works. If
a donor establishes an endowed fund (defined by the Endow Iowa
legislation as an invested fund whose annual spending cannot exceed 5%
of the corpus) or gives to an existing endowed fund at a qualified
community foundation (The Greater Cedar Rapids Community Foundation is a
qualified community foundation), they become eligible for an Iowa income
tax credit worth 20% of the value of their gift. This is in addition to
their state and federal charitable deductions. So a $50,000 gift
brings a $10,000 Iowa income tax credit. The maximum credit per year
for a single taxpayer is $100,000, meaning endowments gifts as large as
$500,000 can take full advantage of the program. A married couple
represents two taxpayers and can each give the maximum.
Other important details:
*Beginning in 2008, $3 million
in credits are available statewide each year.
*If the credits run out for a
given year (as they have for 2007), donors are issued credits for the
next year.
*The credits are first come
first served. Donors shouldn’t delay.
*The donor has five years to
utilize the credits once they are issued.
*Benefiting organizations must
be Iowa charities (such as Camp Wyoming).
*Corporations are eligible to
participate in Endow Iowa.
*10% of the credits will be held
for gifts under $30,000.
Endow Iowa creates an incentive
for donors to give during their lifetime, to establish endowments that
can provide important resources to help sustain organizations like Camp
Wyoming. It is difficult to overstate the opportunities created through
Endow Iowa. Through The Greater Cedar Rapids Community Foundation
alone, several million dollars of endowments have been created for which
donors received tax credits. It is very easy, and the GCRCF handles the
administration.
If Camp Wyoming is important to
you, Endow Iowa may be a program that will allow you to ensure the
Camp’s future and bring you significant tax benefits. Call me or Kathy
Hall, at 319.366.2862 if you have questions, or visit the Cedar Rapids
Community Foundation at www.grcf.org
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