Tax Incentives

Individuals who make gifts to the Community Foundation of Northeast Iowa are able to take advantage of unique tax incentives.

Because the federal government recognizes the Community Foundation as a 501(c)(3) organization, donors may take both federal and state charitable deductions on their gifts to our funds.

In addition, donors are also eligible for a 25% Iowa state tax credit for gifts to permanent endowment funds at community foundations that meet national standards, like the Community Foundation of Northeast Iowa.

IRAs can qualify for tax-free charitable distributions

Now it's easier than ever to make the gift of a lifetime.

The Community Foundation of Northeast Iowa can help turn your individual retirement accounts (IRAs) into tax-saving charitable gifts. New tax benefits allow more people to experience the joy of giving during their lifetimes.

You can give more for less.

For years, estate planners have recommended that retirement assets may be the most tax-effective asset in larger estates to distribute to charity. These assets are not only vulnerable to heavy taxation as part of an estate but also can be taxed again as income in respect to a decedent on the tax returns of heirs.

Until recent legislation, there was a disincentive for retirees to give IRAs to charity during their lifetimes because withdrawals from IRAs were subject to income tax—even those given to charity.

Tax law extension. Through 2011, retirement assets may become a preferred charitable gift for seniors. IRA distributions to charity can now receive new tax advantages. Americans age 70½ and up can make tax-free IRA contributions to public charities such as your community foundation.

Because this legislation comes so close to the end of 2010, qualified charitable contributions made from IRAs through January 31, 2011 can be applied for 2010 tax purposes.

25% State Tax Credit. In addition, if your IRA is transferred to a permanent fund at the Community Foundation of Northeast Iowa, you are eligible for a 25% Iowa state tax credit on the tax-free IRA rollover gift. 

You can make a difference.

By giving through your community foundation, you can use your gift to meet ever-changing community needs—including future needs that often cannot be anticipated at the time your gift is made. Your gift can target the causes and programs you care about most.

The Community Foundation of Northeast Iowa understands our community’s most pressing issues and can help you establish a fund to make an impact in areas of need or opportunity that are important to you. Here are three great ways to turn your IRA into community good:

Black Hawk County Community Fund—Meeting ever-changing community needs.

Address a broad range of current and future needs. The Community Foundation of Northeast evaluates all aspects of community well-being—arts and culture, community development, education, environment, health and human services—and awards strategic grants to high-impact projects and programs.

Field of Interest Fund—Connecting personal values to high-impact opportunities.

Target gifts to the cause most important to you: arts, AIDS services, urban education, neighborhood revitalization, youth welfare and more. The Community Foundation of Northeast Iowa awards grants to community organizations and programs addressing your special interest area.

Designated Fund—Helping local organizations sustain and grow.

Support the good work of a specific nonprofit organization—a senior center, museum or any qualifying nonprofit charitable organization—by creating a specially Designated Fund. The Community Foundation will invest your gift for long-term growth and issue grants to your favorite nonprofit on a regular basis.

To learn more contact Mary Ann Burk at (319) 287-9016 or via email.