For Iowans whose New Year’s resolutions include contributing more to their favorite charities and saving on their taxes, the Endow Iowa program provides a way to cross both goals off their lists.

Through the program, donors who establish an endowed gift through a qualified community foundation or community organization can receive up to $100,000 in state income tax credits. Last year, 453 donors contributed amounts that ranged from as little as $5 to the maximum amount eligible for the credit, $500,000.

Additionally, through the County Endowment Fund created by the Legislature in 2004, nearly every county in the state now has a community foundation through which residents can establish permanent endowments to benefit their local communities. The program is restricted to counties that do not have racetracks or casinos.

Endow Iowa, established by the Legislature in 2004, provides for $2 million in tax credits to be issued annually. The response to the program has been strong; by Dec. 27, all of the 2005 tax credits had been claimed, said Mike Miller, Investment Management Team leader for the Iowa Department of Economic Development, which administers the program.

“What that represents is $10 million to charitable causes around the state,” he said. The funds must be used to establish permanent endowment funds, which can pay out no more than 5 percent of their balances each year.

More than half of last year’s Endow Iowa contributions were established to benefit Central Iowa charities, through 82 gifts made through the Greater Des Moines Community Foundation, said the foundation’s president, Johnny Danos. The more than $5 million in Endow Iowa gifts represented about 25 percent of the total donations last year to the community foundation.

“We’re pretty excited about the numbers generated,” Danos said. “When you look at (the endowments made), virtually every aspect of the community is touched, from the arts to health and human services as well as educational institutions.”

And just as important, the program has created an immediate incentive for people to give, he said.

“I have no doubt that it’s incenting donors to give now as opposed to simply having an intent to give through their wills, because they put it off,” Danos said. “I think it’s getting people to establish these endowments, and once a person gets into that mode, they tend to give more. I think it’s absolutely introducing people to the community foundation, its facilities and also accelerating giving. I think it’s going to prove to be a real boon to philanthropy across the state.”

As another way to spur philanthropy, the Legislature in 2004 established the County Endowment Fund, which allotted one-half of 1 percent of state gambling revenues to seed new community foundations. In November, 85 qualified community foundations or affiliate organizations received their first annual installment of gambling revenues, approximately $63,600 each, through the program.

Seventy-five percent of the dollars must be granted to current charitable projects within their counties, while the other 25 percent must be placed in permanent endowments designed to attract other donations and provide a source of funding for future charitable projects within the community.

“Most of these foundations are looking at gaming dollars as just one source,” said Angie Dethlefs-Trettin, a spokeswoman for the Iowa Council of Foundations. “They’re geared to providing a long-term source of funding by encouraging private donations. Really, the growth opportunity for engaging Iowans and even past Iowans in giving back to the community is really endless. That’s what’s exciting about these affiliates; people who have that connection can give back to their hometown, even if they’ve left Iowa.”

Last year, the Legislature extended the Endow Iowa program, authorizing an additional $2 million in tax credits to be issued annually through 2008. With the additional number of community foundations to which to donate and increasing awareness of the Endow Iowa program, those credits will probably go more quickly this year, Miller said.

Donors who contributed after Dec. 27 will receive 2006 credits, and when those run out, 2007 credits will begin to be issued, he said. “So when someone makes a donation and sends it in, they don’t necessarily know whether it will be 2006 or 2007 credits.”

Danos agreed that the 2006 credits will go fast.

“I wouldn’t be surprised if we’re out of (2006) credits before September,” he said. “So we’re advising our donors who want 2006 credits to do their donating early this year.”

For more information about the Endow Iowa program, visit the Iowa Department of Economic Development Web site at www.lifechanging.com/endowiowa, or call the Greater Des Moines Community Foundation at 883-2626.