Iowa Tax Credit

Endow Iowa

When you make an endowed gift to the Wayne Community Foundation or any of it’s funds, it will cost you far less thanks to Iowa’s generous Endow Iowa 25% state tax credit. For example, after the state tax credit and federal deduction, (a $10,000 gift will cost a couple in the 35% tax bracket just $4,000).

Income Tax Savings and Net Cost of Charitable Gifts

  • Amount of gift – $10,000
  • State Tax Credit – $2,500 (a)
  • Federal Tax Deduction – $10,000 (b)
  • Federal Tax Rate – 35.0% (c)
  • Federal Tax Savings – $3,500 (d)
  • Total Tax Savings – $6,000
  • Net Cost of Gift – $4,000

a) 25% of the charitable gift; maximum gift of $1.2 M/individual $2.4M/couple
b) Donor can deduct the entire amount of the gift on federal taxes.
c) Individual tax rates vary.
d) Assumes that taxpayer itemized deductions on their federal return.