Carlson Family
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.
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
Here is how to apply for your Endow Kentucky tax credit through Horizon Community Foundation.
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.
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.
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.
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, Campbell, and Kenton Counties 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, Campbell, and Kenton Counties.
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.
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.
Featured Initiative
Partners for Change
Horizon Community Foundation’s 40 Wise initiative brings together community-minded leaders from across Northern Kentucky to support charitable causes, nonprofit organizations, and civic improvement efforts — encouraging collaboration, philanthropy, and long-term regional investment.
Common Questions
Frequently Asked Questions
Everything you need to know about the Kentucky Endow Tax Credit and how to participate.
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.
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!
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.
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.
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.
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.
