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ENDOW KENTUCKY
ENDOW KENTUCKY TAX CREDIT 2022
- You must apply for your credit and have approval BEFORE making your charitable gift
- Gifts must be made to a permanent endowment fund at a qualified community foundation.
- The tax credit is 20% of the charitable gift (Example: a $5,000 charitable gift would provide a $1,000 credit)
- Maximum credit per taxpayer is $10,000 (20% of $50,000 = $10,000)
- The tax credit is not refundable, but may be carried forward up to 5 years
- For more information go to www.revenue.ky.gov or call the Kentucky Department of Revenue at 502-564-8139
Learn More at KENTUCKY DEPT OF REVENUE
What Gifts Qualify for the Endow Kentucky Tax Credit
Gifts can be cash or appreciated assets. Below is a list of options that qualify as gifts for Endow Kentucky Tax Credit at the Community Foundation:
- Establish or add to an endowed charitable fund (community funds or donor advised funds)
- Establish or add to an endowed scholarship fund
- Establish or add to a designated endowment fund for a Kentucky nonprofit
- Donate to one of the Community Foundation’s existing endowment funds
In addition to the federal charitable tax deduction value of the gift, the tax credit may be taken against individual income tax, corporate income tax and the limited liability entity tax. Any tax credit that cannot be used by the taxpayer during a particular taxable year may be carried forward for use in subsequent taxable year(s) for a period not to exceed five years. This is a tax credit, not a deduction. A tax credit lowers your tax bill dollar-for-dollar regardless of your tax bracket.
HOW TO APPLY
Applying for your Endow Kentucky Tax Credit is simple. Please use the following steps to ensure you receive your Endow Kentucky Tax Credit.
- Contact the Community Foundation to obtain an application pre-printed with the Foundation’s information for your convenience. The Foundation can assist you with the preparation and the filing of the application. A complete, signed application must be submitted between July 1st – July 7th.
- Following a review by the Department of Revenue, A preliminary Authorization Letter will be issued to you.
- You will have 30 days from the date of the Preliminary Authorization to make your gift to the Community Foundation to your chosen fund.
- Within 10 days of making your gift, the Community Foundation will complete a Schedule Endow on your behalf and send it to the Department of Revenue as proof of your charitable gift.
- The Department of Revenue will review the Schedule Endow and send final approval to you.
LIMITED OPPORTUNITY
State tax credits are available to individuals and corporations on a first-come, first-served basis beginning July 1. All applications received between July 1 and July 7, will be considered as being filed at the same time. To be eligible for the Endow Kentucky tax credit, you must receive prior approval through the Kentucky Department of Revenue before your charitable gift is made.
Keep in mind that tax credits will likely be depleted shortly after July 7, so the earlier you plan, the better. If you are considering a charitable gift that may be eligible for the tax credit, we encourage you to contact us or discuss your charitable plans with your tax advisor as soon as possible.
Contact The Community Foundation BEFORE you apply for your Endow Kentucky Tax Credit:
270-904-2079
jenniferw@cfsky.org