Since the inception of Endow Iowa credit in 2004, Iowa community foundations have leveraged more than $435 million in permanent endowment fund gifts to support Iowa communities, nonprofits and charitable causes. The contributions were made through over 53,000 donations benefitting each of Iowa’s 99 counties.
Iowa’s community foundations are joining together to celebrate the success of this program by sharing stories of local impact.
ABOUT THE PROGRAM
The Endow Iowa tax credit is awarded on a first-come, first-served basis to donors who make a gift to a permanent endowment fund, established for the benefit of Iowa charitable causes, at a qualified community foundation in Iowa. Qualified community foundations are accredited through the National Standards for U.S. Community Foundations. The program is utilized by a wide range of donors, including individuals, businesses and financial institutions, with a majority of donations being $1,000 or less. These dollars will continue to grow in endowment funds in perpetuity, improving lives for Iowans both now and for years to come. Last year alone, Endow Iowa funds at Iowa community foundations granted $32.2 million to nonprofits and charitable causes in the state.
MUSCATINE COUNTY IMPACT
The Endow Iowa Tax Credit program has significantly enhanced philanthropic efforts in Muscatine County, encouraging individuals and businesses to invest in the community’s long-term success. In 2024, over $700,000 in grants were made from Endow Iowa qualified endowment funds to support critical initiatives in areas like education, health, housing, arts and culture, and economic development. By offering a 25% state tax credit on qualifying charitable gifts to endowed funds at accredited community foundations, the program has incentivized sustained local giving. Through the growth of permanent endowments, local nonprofits and community organizations have benefited from sustainable funding streams, allowing them to expand services, address emerging needs, and create lasting change for generations to come. The program not only strengthens local philanthropy but also fosters a culture of giving that continues to shape Muscatine County’s future.
BROAD BENEFITS
There are many benefits of this program, but the primary goal of the program is to keep charitable dollars in the state. When the program began, legislators were eyeing a generational transfer of wealth. Twenty years later, that transfer continues to present a tremendous opportunity for Iowans. “Transfer of Wealth Opportunity State of Iowa,” a recent study commissioned by the Iowa Council of Foundations (ICoF), estimates that more than $30.4 billion in Iowa assets will change hands in the next 10 years with the passing of older residents. Over 40 years, the figure swells to $128 billion. If heirs and successors live out of state, those assets—from agricultural land to stock dividends—may leave the community where they were generated. Endow Iowa incentivizes donors to invest those resources right here in Iowa.
The program is administered by the Iowa Economic Development Authority (IEDA) in collaboration with the Iowa Council of Foundations (ICoF). The ICoF is a statewide membership association of foundations and grantmaking organizations across Iowa. The ICoF’s mission is to strengthen, guide and grow philanthropy in Iowa.
“Just over two decades ago, our state leaders had the foresight to recognize the potential of Endow Iowa as a tool to support our communities and to keep wealth from leaving our state. Endow Iowa tax credits have created a win-win-win for donors, communities and nonprofit organizations in Iowa. The impacts of this program can be seen in communities all across our state.” said Kari McCann Boutell, President of the Iowa Council of Foundations.
Learn more at https://iowacommunityfoundations.org/impact/.
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