Endow Kentucky Tax Credit Opens July 1
The Endow Kentucky Tax Credit can support survivors and offers a great tax incentive.
Endow Kentucky Tax Credit season is quickly approaching! Tax credits totaling $1 million will become available on July 1. But these tax credits are often gone in the first week, so now is the time to start planning.
Individuals and businesses can receive a credit on Kentucky state taxes of up to 20% of a gift to our endowed fund held at Blue Grass Community Foundation. The credit is in addition to your federal and state charitable tax deduction.
Answers to frequently asked questions are included below:
Is there a minimum or maximum gift amount for the tax credit?
There is no minimum gift size required to receive the tax credit.The maximum gift amount is $50,000.
What if I'm not itemizing my charitable donations this year?
You can likely still take advantage of the Endow Kentucky Tax Credit. This is a state tax credit, not a deduction. A tax credit reduces your Kentucky state tax liability dollar-for-dollar, regardless of your ability to itemize.
Are donations of non-cash assets eligible for the tax credit?
Yes, these non-cash assets could be eligible:
- stocks
- mutual funds
- tangible property
- donations of life insurance
- donors 70 ½ and older can make a qualified charitable distribution from qualifying IRAs (QCDs can be made to any endowed funds other than donor advised funds).
How do I apply for the tax credit?
Here is a link to this year’s Application for Preliminary Authorization.
How do I make sure my application is received on July 1?
With your permission, Blue Grass Community Foundation can submit the application on your behalf on July 1. You may also email or fax the completed form to the Kentucky Department of Revenue on July 1. Mailing your application is not advised.
How can I learn more about your endowment?
We look forward to sharing more about how our permanent endowment supports the mission in perpetuity–through times of crisis and opportunity. Please reach out to Corissa Phillips, our Certified Fund Raising Executive on staff. She can be reached by calling 859-519-1904 or you can send her a note here.
This post was written with information provided by the Blue Grass Community Foundation. We always encourage you to consult your accountant or professional advisor to learn about the personal impact of receiving your tax credit.
