Endow Kentucky Tax Credit Program applications must be received by the Ky. Department of Revenue between July 1 and July 7, 2022
HENDERSON, Ky. — One million dollars in state income tax credits becomes available July 1 through the Endow Kentucky program, but philanthropists need to take action quickly because the tax credits are typically exhausted within a couple of weeks each year.
Authorized by the General Assembly in 2010, the Endow Kentucky Tax Credit Program offers taxpayers an opportunity to help their community and receive a tax credit toward their Kentucky income tax.
“Endow Kentucky is a splendid program that can benefit both donors and nonprofits,” Mark Weaver, board president of the Community Foundation of Henderson, said. “If you are prepared to move quickly, download and fill out the application now and submit it so that it is received by the Kentucky Department of Revenue between July 1 and July 7, 2022. If not, now is a good time to learn about Endow Kentucky so you can apply next year.”
For a contribution to endowed permanent funds at a qualified community foundation — such as the Community Foundation of Henderson — a taxpayer may receive a 20% tax credit up to $10,000 per donor or $20,000 per couple per taxable year. The tax credit benefit is in addition to the federal and state charitable tax deduction value of the gift.
To apply, a Kentucky taxpayer must file an application for preliminary authorization of the tax credit — called the Endow Application — with the Kentucky Department of Revenue. All applications received between July 1 and July 7, will be considered as being filed at the same time. The department will review all preliminary applications received and provide notice of the preliminary approval within 30 days. Within 10 days proof of the endowment gift must be sent to the Department.
To apply for a tax credit for making an endowment gift to a fund within the Community Foundation of Henderson (via our affiliation with the Community Foundation of West Kentucky), you can download the Endow Application at https://cfhenderson.org/wp-content/uploads/2022/06/ENDOW-APPLICATIONUPDATED-2022.pdf
Instructions and the blank copies Endow Application are available online at https://revenue.ky.gov/Business/Pages/Endow-Kentucky-Tax-Credit.aspx.
For questions or more information about the Endow Kentucky Tax Credit, call Tony Watkins of the Community Foundation of West Kentucky at 270-442-8622 or the Department of Revenue at 502-564-8139.
To determine the impact of a tax credit, a donor should consult his or her financial advisor or consultant.
Donors, including individuals and corporations, who contribute to a permanent endowment fund at the Community Foundation of Henderson may be eligible for a 20% tax credit up to $10,000 per donor per taxable year. The credit may be taken against individual income tax, corporate income tax, and the limited liability entity tax, in addition to the federal and state charitable tax deduction value of the gift. This tax credit may be carried forward for up to five years.
The Community Foundation of Henderson (CFH) is a non-profit philanthropic organization offering donor services, endowment building opportunities and philanthropic advocacy. Through the power of permanently endowed funds, the CFH help donors achieve their charitable goals and enables nonprofits to establish stable income sources.
CFH acts as a servant to the community, supporting initiatives that build a stronger, more vibrant Henderson. The four pillars or interest areas that encompass CFH are:
- Educating our community
- Caring for our community
- Inspiring our community, and
- Improving our community.
The CFH also serves as a resource for grant information and broker training and technical assistance for local nonprofits. CFH is an affiliate foundation in partnership with the Community Foundation of West Kentucky.
Visit cfhenderson.org for more information.