According to a 2017 transfer of wealth study, more than $707 billion dollars will pass from one generation to the next in Kentucky over the next 50 years.

Many of those dollars will leave our state.

Charitable endowment funds work to ensure some of these funds remain in our communities.

The Endow Kentucky Tax Credit was created by the Kentucky state legislature in 2011 to incentivize donors to give to permanent endowment funds at community foundations.

These permanent funds are meant to provide annual support to nonprofit organizations and charitable causes — forever.

Because of this tax credit, donors who contribute to these endowments can receive up to a 20 percent state credit on the value of their gift. Through the tax credit program, a maximum gift of $50,000 could receive up to a $10,000 Kentucky state tax credit.

Many nonprofit organizations in Clark County have charitable endowment funds that qualify for this tax incentive. This includes the Clark County Community Foundation, an endowment fund established in 1998 to provide grants for charitable causes that make Clark County a more generous, vibrant and engaged community.

The Clark County Community Foundation grants close to $400,000 annually and is overseen by a group of local residents with diverse backgrounds within the community.

The Clark County Community Foundation has provided funding for projects such as On the Table, I Was Here, Clark County Public Schools safety and violence prevention grants, Clark County Community Foundation Scholars and matching grants of up to $10,000 for each Clark County nonprofit in the GoodGiving Challenge.

The impact of the charitable gifts to the Clark County Community Foundation will long outlive any donor, creating an amazing legacy for our community. Charitable gifts to the fund increase the amount of grants awarded for the benefit of our community, not just this year but every single year — in perpetuity.

Additional nonprofit and designated endowment funds held at the Community Foundation for Clark County organizations include the following:

— Clark County Animal Shelter Fund
— Clark County Community Services Endowment Fund
— Clark County Homeless Coalition Endowment Fund
— Leeds Center for the Arts Endowment Fund
— Lower Howard’s Creek Heritage Park Fund
— Rose Mary C. Brooks Place, Inc. Fund
— St. Agatha Endowment Fund

We know the vast majority of people who contribute to nonprofit organizations do so for reasons other than receiving a tax benefit; however, tax benefits like the Endow Kentucky Tax Credit can help leverage your charitable dollars to have the most impact.

Pairing these tax incentives with donations of non-cash assets, like appreciated stock or IRA-qualified charitable distributions, can also make your giving more effective and efficient.

Whether you’re giving to the Clark County Community Foundation, one or more of the Clark County nonprofit endowment funds listed above, or you want to open your own charitable endowment, we are here to assist. The Endow Kentucky Tax Credit becomes available on July 1.

For more information or assistance in applying for the credit, contact Halee Cunningham, halee@bgcf.org or 859.225.3343.

Halee Cunningham, is a Clark County native and serves as gift planning officer/deputy counsel for Blue Grass Community Foundation and administrator for Clark County Community Foundation. For additional information about Clark County Community Foundation or lifetime and estate giving, contact Halee at halee@bgcf.org.