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Endow Kentucky tax credit offers incentives for donors to qualified community foundations


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.

“This is an opportunity for Kentuckians to sustain the nonprofits who help our community thrive,” said Nancy Grayson, President and CEO of Horizon Community Funds. “These endowed gifts enable these organizations to be better positioned to serve our neighbors as needs arise.”

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’ve utilized the Endow Kentucky Tax Credit program in the past as it’s a great way to enhance gifts to deserving nonprofits,” said Chuck Scheper, Chairman of Bexion Pharmaceuticals. “Last year, we decided to seed a newly formed fund set up for one of our favorite charities, Covington Partners, so others could add to this designated account at Horizon Community Funds. Since we transferred appreciated stock, we not only earned the 20 percent Endow Kentucky Tax Credit and charitable tax deduction for the full fair market value of the stock, but we were also able to avoid the capital gains tax on the appreciation. We hope others will consider making an addition to the fund this year and the Endow Kentucky Tax Credit Program is the perfect way to maximize such gifts. The Horizon Community Funds team made the whole process very easy.”

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/2022-endow-kentucky.

For more information from the state Department of Revenue, click here.


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