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Endow Kentucky Tax Credit window opens for KY donors; up to to $10,000 in credits available

One million dollars will be available for nonprofit supporters in Kentucky on July 1. Donors making a gift to an endowed fund are eligible for the incentive, and Horizon Community Funds offers a variety of funds for donors to consider for contribution.

The Endow Kentucky Tax Credit offers a unique opportunity to receive a state tax credit toward the donor’s Kentucky Income Tax (individual, corporate, or limited liability) after making a contribution to a permanent endowment fund at Horizon Community Funds of Northern Kentucky. 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.

“The community is coming out of an extended period of hardships,” said Horizon Community Funds President Nancy Grayson. “By sustaining our nonprofits for the long term through an endowed gift, donors help these agencies more swiftly navigate times of financial crisis, enabling them to keep focusing on their mission to serve Northern Kentucky.”

The credits are typically depleted within just a couple of weeks of the July 1 start date, and many donors have already submitted early applications for 2021. 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.

“I reached out to Nancy in 2020 to take advantage of the Endow Kentucky Tax Credit, and it has been a great experience” said Brandstetter Carroll, Inc. President Ben Brandstetter. “I started out small to test the process and it went so well that we also created our own foundation. This will allow us to be more intentional with our giving while also growing the pool of funds from which to support particular local efforts. Discussions with Nancy also led me to rethink how we approach the overall topic of giving and I appreciate her ability to guide the discussion to show how we can have an even greater impact. It is great to know that others also are also participating in this effort and I hope you will join me in applying for this credit in order to further build up our local nonprofits for the future.”

Horizon Community Funds currently manages funds benefiting more than two 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.

Fund partnerships provide a flexible way for donors to support their preferred nonprofit organization or charitable effort. Partnerships allow donors can make an endowed gift to support the mission of the nonprofit organization for generations to come or can opt to make a non-endowed gift that provides funding for needs as they arise in Northern Kentucky.

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.

Horizon Community Funds

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