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Endow Kentucky Tax Credit Opens Soon!Blog

Endow Kentucky Tax Credit Opens Soon!

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. 

Is there a minimum or maximum gift amount for the tax credit?  

There is no minimum gift size required to receive the tax credit. Unlike tax deductions, tax credits are subtracted from a donor’s tax bill, dollar for dollar. A gift of $5,000 can reduce what you owe in state taxes by $1,000. A gift of $50,000 can reduce your tax bill by $10,000. The maximum gift amount is $50,000.  

Not itemizing your 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, here is the list of non-cash assets that could be eligible:

  • stocks, 
  • mutual funds, 
  • tangible property, 
  • donations of life insurance, and 
  • 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 make an endowment gift eligible for the credit? 
  1. The first step is to complete the Application for Preliminary Authorization.
  2. The completed form should be mailed or emailed to the Kentucky Department of Revenue in Frankfort. Addresses are included in the application, but if you’d rather just drop it off at the Blue Grass Community Foundation office, they’ll mail it for you.
  3. Next steps and additional resources, including contacts at the Blue Grass Community Foundation, are linked at the bottom of this page. 
How can I learn more about your endowment? 

Send a note to Corissa Phillips, Certified Fund Raising Executive on staff. She looks forward to sharing more about how our permanent endowment supports the mission in perpetuity–through times of crisis and opportunity. 

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.

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