Tax Incentives Available to Kentucky Donors Through Endow KY Tax Credit
taxpayers can receive up to $10,000 in credits
One million dollars in tax credits is available to donors making a gift to an endowed fund at a qualified community foundation in Kentucky. Horizon Community Funds of Northern Kentucky, a qualified community foundation, offers a wide variety of endowed funds for donors to consider for contribution.
The Endow Kentucky Tax Credit offers a unique opportunity to receive a dollar-for-dollar state tax credit toward donors’ Kentucky Income Tax (individual, corporate, or limited liability) after contributing to a permanent endowment fund at Horizon Community Funds. Endowment funds are for those who want to give today and long into the future, as they are held in perpetuity and produce an annual payout.
“Through endowed gifts, donors can contribute to the longevity of our community’s nonprofits,” said Nancy Grayson, President and CEO of Horizon Community Funds. “The Endow Kentucky Tax Credit program not only strengthens Kentucky’s future but provides a great incentive for those looking to have a collective impact.”
The credits are typically depleted within the first week of the July 1 start date, and donors are strongly encouraged to work with Horizon Community Funds on completing their applications. Taxpayers, individuals, and corporate donors are all able to participate in the program.
Donors are eligible to receive up to a 20 percent income tax credit (not to exceed $10,000 per individual/entity or $20,000 per married couple filing jointly) per taxable year. A new allotment of tax credits is available on July 1 each year.
“We have found the Endow Kentucky Tax Credit program to be an excellent way to have a significant impact on nonprofits that are bettering our Northern Kentucky community,” said Keith Carlson, CEO & Managing Partner Roebling Capital Partners. “We were able to support nonprofits that are meaningful to us while benefitting from significant tax incentives. We were glad to go through this process with Horizon – they made it a very straightforward experience.”
Horizon Community Funds currently manages funds benefiting more than four dozen nonprofits and agencies to boost their awareness in the community and connection to donors. New funds for other nonprofit organizations can also be formed with an Endow Kentucky gift, or gifts can be made to the Community Impact Fund at Horizon Community Funds, which supports nonprofit organizations and charitable needs in Boone, Campbell, and Kenton Counties.
Donors looking to take advantage of the Endow Kentucky Tax Credit can apply by contacting Nancy Grayson at ngrayson@horizonfunds.org or 859.468.4665, or by visiting horizonfunds.org/2023-endow-kentucky.