Endow Kentucky Tax Credit

Thanks to the Endow Kentucky Tax Credit, there has never been a better time to invest in the future of our community.

Gifts to endowed charitable funds at Blue Grass Community Foundation are eligible for up to 20% in state tax credits. Only gifts to endowment funds at accredited community foundations qualify for this 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. And this is in addition to your federal and state charitable tax deduction.

But these credits go fast! The Kentucky Department of Revenue begins accepting applications for the $1 million pool of available Endow Kentucky Tax Credits on July 1. All applications submitted between July 1 and July 7 are guaranteed to receive at least a prorated portion.

HOW DOES IT WORK?

  • Obtain preliminary approval. Fill out the Application for Preliminary Authorization and submit to the Kentucky Department of Revenue via email, fax or hand delivery. (NOT by US mail.) Or, send your completed application to us and we’ll deliver it for you.
  • After you receive preliminary approval from the Kentucky Department of Revenue, send it to us.
  • Within 30 days of receiving your approval letter from the Kentucky Department of Revenue, make your contribution to an endowment fund at BGCF.
  • Within ten days of making your gift, the Community Foundation will send proof of your gift to the Kentucky Department of Revenue, which will in turn send you a letter of final approval to include with your 2020 Kentucky state tax return.

Click here for a list of nonprofit and community endowments held at BGCF. You may apply for a tax credit on a gift to any one of these funds, or to your own endowed fund established at BGCF.

An endowment’s income provides annual support for charities and charitable causes in perpetuity. Whether it’s supporting an existing endowment at BGCF or creating one of your own, we can help. A gift to an endowment fund is an investment in today and tomorrow.

Whether it’s supporting an existing endowment at Blue Grass Community Foundation or creating one of your own, we can help, every step of the way. For more information, contact Scott Fitzpatrick, Halee Cunningham, or Jane Higgins. Or call us at 859.225.3343.

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