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Endow Kentucky tax credits for community foundation gifts have run out for fiscal year


As of Dec. 19, $1 million in tax credits for gifts to endowments at Kentucky community foundations have officially run out in a fiscal year that runs through June 30, 2013. The tax credits were designated as part of the Endow Kentucky legislation, which also created an Endow Kentucky Commission in an effort to increase philanthropic giving statewide.
 

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“There were actually $72,000 in credits listed as available yesterday,” said Davette Swiney, vice-president of Central Kentucky Community Foundation. “We are glad to see people taking advantage of that tax credit. It’s good news and it’s bad news, it’s wonderful that people are taking advantage of it. Of course now, there are no more tax credits available at this time for other people.”
 

“I think the response that the citizens of the Commonwealth have shown by taking full advantage of this tax credit in less than six months of the fiscal year, shows what a difference it can make in our community,” Swiney said.
 

The tax credits incentivize giving to endowment funds at approved community foundations in the state. Donors to endowments receive the credit plus their regular charitable deduction. An endowment is a permanent fund from which only earnings – up to 5 – are distributed for charitable purposes. The donor can designate the use of the endowed funds, as long as the uses qualify as charitable.
 

“This is really good news-bad news,” said Judith Clabes, founder and president of the Kentucky Philanthropy Initiative which advocated for the tax credits. “It’s a wonderful, positive success story that so much new giving has resulted from such a modest incentive. The legislators – who unanimously approved the tax credits in 2010 – should be very proud of what has been accomplished.”
 

At the same time, Clabes said, “we need to re-double efforts to renew and increase the incentive.”
 

Though the tax credits have run out, community foundations are still in need of gifts. The following Community Foundations are certified under the Endow Kentucky Commission:
 

Bluegrass Community Foundation
Community Foundation of Christian, Todd & Trigg Counties
Foundation for Appalachian Kentucky
Community Foundation of Louisville
Community Foundation of West Kentucky
Northern Kentucky Fund/Greater Cincinnati Foundation
Foundation for the Tri-State Community
Central Kentucky Community Foundation
 

You might also be interested in: Kentucky Philanthropy Initiative presents Commonwealth Award to three public officials and Judy Clabes: Give because you’re part of the community and you care about good works


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