Endow Kentucky Tax Credit Program

Reduce Your Kentucky State Taxes While Supporting Northern Kentucky Nonprofits

Receive up to a 20% Kentucky income tax credit when you contribute to a qualifying endowed fund through Horizon Community Foundation of Northern Kentucky.

Keith & Leah Carlson, Endow KY Donors

Program Overview

What Is the Endow Kentucky Tax Credit?

The Kentucky Endow Tax Credit Program allows Kentucky taxpayers to receive a state income tax credit for qualifying donations made to permanent endowed charitable funds.

20%
Kentucky income tax credit on qualifying contributions
$10,000
Maximum annual credit per individual taxpayer or entity
$20,000
Maximum annual credit for married couples filing jointly
5 Years
Unused credits carry forward up to five tax years

Individuals, married couples, businesses, corporations, and LLCs may qualify for tax credits while supporting nonprofit organizations serving Northern Kentucky communities — including Boone County, Campbell County, and Kenton County.

In addition to the Kentucky state income tax credit, your qualifying charitable contribution may also be eligible for a federal charitable tax deduction, maximizing the overall tax benefit of your gift.

Applications open July 1 each year through the Kentucky Department of Revenue — credits are allocated first-come, first-served and fill quickly.

Simple 4-Step Process

How the Endow Kentucky Tax Credit Works

The process is straightforward. Here is how to reserve and apply your Kentucky charitable tax credit through Horizon Community Foundation.

1

Fill out the application for preliminary authorization of the tax credit with the Kentucky Department of Revenue.

2

After completing the approved preliminary authorization form, please email a copy to Nancy Grayson at ngrayson@horizoncfnky.org. Please keep a copy for your records. Horizon Community Foundation will submit your application as a courtesy when the application window opens on July 1. Timeliness is critical as these tax credits have been completely allocated during the first week of July historically.

3

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

4

Within 10 days of making the gift, Horizon Community Foundation 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.

Eligibility

Who Qualifies for the Kentucky Endow Tax Credit?

A wide range of Kentucky taxpayers and entities are eligible to participate in the Endow Kentucky Tax Credit Program.

👤Individual Taxpayers
💑Married Couples
🏢Business Owners
🏛Corporations
🤝LLCs & Partnerships
👨‍👩‍👧Families & Estates

Qualifying Contributions

What Types of Gifts Qualify?

Qualifying gifts must be contributed to a permanent endowed charitable fund. The following gift types are eligible for the Endow Kentucky Tax Credit.

💵

Cash Donations

Direct cash contributions to a qualifying permanent endowed fund at Horizon Community Foundation.

📈

Appreciated Securities

Gifts of publicly traded stocks, mutual funds, or other appreciated securities transferred directly to an endowed fund.

🏠

Appreciated Assets

Other appreciated assets, including real estate interests, may qualify when contributed to a permanent endowed fund.

📋

Endowed Fund Gifts

Contributions that permanently establish or grow a qualifying charitable endowment benefiting Northern Kentucky nonprofits.

Minimum gift requirements: $25,000 for new charitable endowments  |  $50,000 for new scholarship funds. Contact us to confirm minimums for gifts to existing Horizon endowed funds.

Long-Term Community Impact

Supporting Northern Kentucky Communities for Generations

Endowed giving creates lasting support for the communities and nonprofit organizations serving Northern Kentucky. Unlike one-time donations, endowed funds are designed to provide ongoing annual support for the causes, schools, charities, and civic initiatives that strengthen Boone County, Campbell County, and Kenton County for generations to come.

When donors contribute to an endowed fund through Horizon Community Foundation of Northern Kentucky, those gifts are invested for long-term sustainability. A portion of the fund is distributed each year to support nonprofit programs and community needs throughout Northern Kentucky, while the principal remains intact to continue generating impact well into the future.

This approach helps create financial stability for nonprofits serving Northern Kentucky communities. Instead of relying solely on annual fundraising efforts, organizations benefit from dependable, recurring support that allows them to plan ahead, expand programs, and continue serving local families, students, and residents across Boone County, Campbell County, and Kenton County.

Endowed giving also creates opportunities for donor collaboration. By pooling charitable investments through community endowment funds, donors throughout Northern Kentucky can collectively support larger initiatives and long-term community priorities that may not be achievable through individual gifts alone.

Boone CountyCampbell CountyKenton CountyGreater Northern Kentucky

Endowed Giving vs. Annual Giving

Annual gifts support organizations today. Endowed gifts do both — they generate impact this year and every year going forward. The principal is permanently invested; only a portion of earnings is distributed annually.

What Your Endowed Gift Supports

Whether supporting education, healthcare, food assistance, youth development, arts organizations, or community services — endowed giving ensures Northern Kentucky nonprofits have sustainable resources available not just today, but for future generations.

Community Partners

Nonprofits & Community Organizations Supported

Your Endow Kentucky contribution supports endowed funds benefiting over 80 Northern Kentucky nonprofits. A representative selection by category is shown below.

Common Questions

Frequently Asked Questions

Everything you need to know about the Kentucky Endow Tax Credit and how to participate.

The Endow Kentucky Tax Credit Program is a Kentucky state incentive that encourages charitable giving to permanent endowed funds held at qualified community foundations. Eligible donors may receive a Kentucky income tax credit for qualifying contributions while creating long-term support for nonprofit organizations and community causes.

Eligible donors may receive a Kentucky state income tax credit equal to 20% of their qualifying contribution.

Current annual limits are:

  • Up to $10,000 per individual taxpayer or entity
  • Up to $20,000 for married couples filing jointly

Unused credits may typically be carried forward for up to five years.

Yes. The Endow Kentucky Tax Credit Program is available to many types of Kentucky taxpayers and entities, including:

  • Individuals
  • Married couples
  • Businesses
  • Corporations
  • LLCs and partnerships
  • Trusts and estates

Eligibility is generally based on having Kentucky income tax liability.

Yes. Qualifying gifts may include:

  • Cash
  • Appreciated securities such as stocks or mutual funds
  • Other eligible charitable assets

All gifts must be contributed to a qualified endowed fund and approved through the Endow Kentucky application process.

Applications open annually on July 1 through the Kentucky Department of Revenue.

Because credits are limited statewide and awarded on a first-come, first-served basis, donors are encouraged to apply early.

The Endow Kentucky program has a limited pool of available tax credits each year. Once all available credits have been allocated statewide, additional applicants must wait until the next application cycle opens.

Because credits are often claimed quickly, early application is strongly recommended.

An endowed fund is a permanent charitable fund designed to provide long-term support for nonprofit organizations and community causes.

The principal is invested permanently, while a portion of the earnings is distributed annually to support charitable work year after year.

Yes. Donors may establish or contribute to endowed funds that support specific nonprofit organizations or charitable causes serving Northern Kentucky communities.

Horizon Community Foundation can help structure a fund that aligns with your philanthropic goals while qualifying for the Endow Kentucky Tax Credit Program.

Donor Stories

Why Northern Kentucky Donors Give Through Horizon

Real stories from donors who have used the Endow Kentucky Tax Credit to support lasting community impact.

I reached out to Nancy in 2020 to take advantage of the Endow Kentucky Tax Credit, and it has been a great experience. I started out small to test the process and it went so well that we also created our own Foundation. This will allow us to be more intentional with our giving while also growing the pool of funds from which to support particular local efforts. The credit toward my income tax was a nice incentive; however, this was not the main driver to engage with Horizon Community Funds. Discussions with Nancy led me to rethink how we approach the overall topic of giving and I appreciate her ability to guide the discussion to show how we can have an even greater impact. It is great to know that others also are also participating in this effort and I hope you will join me in applying for this credit in order to further build up our local nonprofits for the future.

Ben Brandstetter

We’ve utilized the Endow Kentucky Tax Credit program in the past as it’s a great way to enhance gifts to deserving nonprofits. Last year, we decided to seed a newly formed fund set up for one of our favorite charities, Covington Partners, so others could add to this designated account at Horizon Community Funds. Since we transferred appreciated stock, we not only earned the 20% Endow Kentucky Tax Credit and charitable tax deduction for the full fair market value of the stock, but we were also able to avoid the capital gains tax on the appreciation. We hope others will consider making an addition to the fund this year and the Endow Kentucky Tax Credit Program is the perfect way to maximize such gifts. The Horizon team made the whole process very easy!

Chuck and Julie Geisen Scheper

We have found the Endow Kentucky Tax Credit program to be an excellent way to have a significant impact on nonprofits that are bettering our Northern Kentucky community. We were able to support nonprofits that are meaningful to us while benefiting from significant tax incentives. We were glad to go through this process with Horizon, they made it a very straightforward experience.

Keith and Leah Carlson

The Endow Kentucky tax credit has proven to be a great avenue for our charitable giving. Through this opportunity, we’ve proudly supported causes close to our hearts, such as Thomas More University, St. Elizabeth Healthcare, and Horizon’s Community Impact Fund. Our experience navigating this process was seamless, thanks to the assistance of the Horizon team. We wholeheartedly encourage others to explore and take advantage of this incentive. Not only does it provide a meaningful way to give back, but it also offers substantial benefits for both donors and the community at large. Together, let’s continue to make a positive impact through philanthropy for worthwhile causes.

Ray and Maureen Hebert

The Endow Kentucky Tax Credit has become a key element to our family’s giving strategy. As a donor, it allows Shelley and I to provide additional support to organizations in Northern Kentucky that mean the most to us. I have also helped organizations that I sit on the board of to open endowment funds via Horizon Community Funds to attract private donors to support the different missions. We all want to give for the right reasons, but the Endow Kentucky Tax Credit helps those who are willing to give to do it in the most tax efficient way possible. This program has been a wonderful investment to strengthen our NKY community for years to come.

Mickey and Shelley Fritz

Ready to Get Started?

Reserve Your Endow Kentucky Tax Credit Opportunity

Applications historically fill quickly after July 1. Speak with Horizon Community Foundation to learn how your charitable contribution may reduce your Kentucky state income tax while supporting long-term impact throughout Northern Kentucky.

Credits open July 1 each year — plan ahead and contact us now to be ready