It's a Win-Win: Endow KY Tax Credit > Covington Partners

It's a Win-Win: Endow KY Tax Credit

Posted on May 31, 2024

The time is now to take advantage of the Endow Kentucky Tax Credit and help Covington Partners in the process.

Longtime Northern Kentucky community leaders Chuck and Julie Geisen Scheper helped to spearhead the fund for Covington Partners with Horizon Community Funds in 2021, citing the nonprofit’s use of best practices and strong collaborations to strengthen student success.

The Endow Kentucky Tax Credit window is rapidly approaching. A total of $1 million is available in credits on July 1, but is shared across the Commonwealth, underscoring the need for local donors to act fast in submitting their applications to take advantage of the incentive, as the credits are expected to be depleted within a matter of days.

Gifts to endowed charitable funds are eligible for up to 20% in state tax credits (individual, corporate, or limited liability; not to exceed $10,000 per individual/entity or $20,000 per married couple filing jointly). A new allotment of tax credits is available on July 1 each year.

To successfully apply for the Endow Kentucky Tax Credit (no minimum gift required) and support the mission of Covington Partners, please complete the following steps:

1. File an application for preliminary authorization of the tax credit with the Kentucky Department of Revenue before July 1, 2024. An application can be downloaded HERE. Please add "Covington Partners" as the Permanent Endowment Fund (line J).

2. After completing the approved preliminary authorization form, email a copy to Nancy Grayson. Please keep a copy for your records. Horizon Community Funds will submit all applications on July 1.

3. Within 30 days of receiving the approval letter from the Kentucky Department of Revenue, you must make the contribution to the Covington Partners Fund at Horizon Community Funds of Northern Kentucky. (Donations must be made through Horizon Community Funds in order to receive the tax credit.)

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.

For more information about the Endow Kentucky Tax Credit program, visit Horizon Community Funds or call Nancy Grayson at 859.757.1552.