By R. David Shew
How many of you have heard about the Endow Kentucky Tax Credit? If not, let’s talk about Endow Kentucky for a minute.
Bottom line, the Endow Kentucky Tax Credit Program allows eligible donors to receive a charitable deduction and a credit against their Kentucky states taxes by making a contribution to an endowment fund at Blue Grass Community Foundation. The Madison County Community Foundation has several endowment funds where individuals can make a contribution as well as apply for the Kentucky tax credit.
How does this work? On July 1, a pool of $1 million in tax credits becomes available to taxpayers, individual and corporate, through the Endow Kentucky Tax Credit Program. Eligible donors can receive a state of Kentucky income tax credit of up to 20% of the value of their gift (not to exceed $10,000 in credit) per tax year. The maximum gift allowed under the Endow Kentucky Tax Credit Program is $50,000. Also, there is no minimum gift size to contribute to an endowment fund and qualify for the tax credit.
In addition, any tax credit that cannot be used by the taxpayer during a particular taxable year may be carried forward for us in subsequent taxable year for a period not to exceed five years. Please consult with your financial advisor or accountant to determine how to proceed.
The Kentucky Department of Revenue will not accept applications until July 1, 2024. The application can be sent to the Blue Grass Community Foundation before July 1, and the foundation will submit the application on your behalf on July 1.
How do you make a contribution? You can contribute checks, publicly traded securities, life insurance policies, IRA qualified charitable distributions, and real estate.
Reach out to the Blue Grass Community Foundation for assistance. Call (859) 225-3343 or go to www.bgcf.org. Once on the website, scroll down to the bottom of the page and click on the “Endow Kentucky Tax Credit” link. The link will explain more about the tax credit and you can click on the “DOWNLOAD THE TOOLKIT” at the bottom of this page.
Madison County Endowment Funds are Kentucky River Foothills Development Council, Inc. Fund (0068); Hospice Care Plus Endowment Fund (0145); Battle of Richmond (KY) Fund (0170); Kentucky Law Enforcement Memorial Fund Inc. Fund (0103); Kentucky Heartwood Endowment Fund (1294); Kentucky Natural Lands Trust Endowment Fund (1110); New Opportunity School For Women Fund (0497); Hope’s Wings Endowment (0521); and Richmond Area Arts Council Endowed Fund (0489).
Please donate to one of the Madison County Community Foundation’s existing endowment funds. You can help an organization and receive a Kentucky tax credit.
