Endow Kentucky Tax Credit

ensuring a strong future

Over these past few tumultuous years, it has become clear that we are stronger together. Our neighbors have shown that in the greatest times of need, they will step up to ensure a stronger Northern Kentucky. Your gift to an endowed fund at Horizon Community Funds helps our nonprofits build for the future. Your donation also allows you to leverage the gifts of others through a pooled endowed fund.

The Endow Kentucky Tax Credit Program offers you a unique opportunity to receive a state tax credit toward your Kentucky Income Tax (individual, corporate, or limited liability) after making a contribution to permanent endowment funds 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.

A total of $1,000,000 is available to taxpayers, individuals, and corporations through the Endow Kentucky Tax Credit Program. You are eligible to receive up to a 20% 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.

Your gift to an endowed fund lasts well into the future. It is a building block on which our nonprofits build their services in Northern Kentucky.

HOW DOES THE TAX CREDIT IMPACT YOU?

To determine the personal impact of receiving your tax credit, you should consult your financial advisor or accountant. Any tax credit that cannot be used in the current tax year may be carried forward for five years. This is a tax credit, which lowers your tax bill dollar for dollar regardless of your tax bracket. Federal and state deductions also apply for these gifts in addition to this tax credit.

WHAT GIFTS QUALIFY FOR THE ENDOW KENTUCKY TAX CREDIT?

Gifts of cash or appreciated assets must be made to a qualified community foundation, like Horizon Community Funds. Gifts to non-endowed funds do not qualify for the Endow Kentucky Tax Credit.

Your gift may be made to any of the funds at Horizon Community Funds that are listed below (no minimum gift required), or you can establish a new endowment to support your preferred Kentucky nonprofit organization, or educational or religious institution. The minimum contribution to open a new endowed charitable fund is $25,000. The minimum to establish an endowed scholarship fund is $50,000.

leveraging your endow ky tax credit

We currently partner with many Northern Kentucky-serving nonprofit entities and causes to operate their endowed funds.

Gifts may also be made to the Community Impact Fund at Horizon Community Funds, which supports nonprofit organizations and charitable needs in Boone, Campbell, and Kenton Counties.

HOW TO APPLY FOR THE ENDOW KENTUCKY TAX CREDIT

Please use the following steps to ensure you receive your Endow Kentucky Tax Credit:

  1. You must file an application for preliminary authorization of the tax credit with the Kentucky Department of Revenue. Feel free to contact us at 859.757.1552 or ngrayson@horizonfunds.org to obtain an application.

  2. After completing the approved preliminary authorization form, please email a copy to Nancy Grayson (ngrayson@horizonfunds.org). Please keep a copy for your records.

  3. Within 30 days of receiving the approval letter from the Kentucky Department of Revenue, you must make the contribution to an endowment fund at Horizon Community Funds of Northern Kentucky.

  4. Within 10 days of making the gift, Horizon Community Funds of Northern Kentucky will send proof of the gift to the Kentucky Department of Revenue by filing the Notice of Endow Kentucky Tax Credit and Certification form. The Department of Revenue will then review the provided proof and issue a letter of final approval to you as the donor.