COVINGTON, Ky. — $1 million 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.
“While we recognize the current urgency to support nonprofits as they face extraordinary crises in the time of COVID-19, gifts to an endowed fund last well into the future,” said Horizon Community Funds President Nancy Grayson. “These donors help us both weather the current storm, and build a safe structure for the long run. Endowed gifts are building blocks that strengthen nonprofits’ services in 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 2020. 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.
“This is a tremendous opportunity to make a gift to the community where we live, work and play,” said MCM CPAs & Advisors Partner and Cincinnati market leader Crystal Faulkner, also a member of Horizon Community Funds’ Council of Trustees. “Meanwhile, donors are able to enjoy a tax benefit to help subsidize the contribution.”
Horizon Community Funds currently manages funds benefiting nine Northern Kentucky nonprofit organizations and causes, including: Boone Conservancy, DCCH Center, Ignite Institute, Licking River Conservation and Greenway, Northern Kentucky University, Redwood, Riverfront Commons, St. Elizabeth Healthcare Cancer Care Institute, and The Carnegie. New funds for other nonprofit organizations can also be formed with an Endow Kentucky gift.
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.