Endow Wisconsin creates the opportunity to hold onto assets to help communities grow, change, and be the places where future generations want to live, work, and thrive. This legislation will encourage Wisconsin citizens to invest in their home communities. Those who contribute to the permanent endowments of local community foundations would receive a tax credit. Providing a tax credit incentive to promote giving to permanent endowments has worked. The Endow Iowa tax credit, in place since 2004, has grown annual giving to permanent endowments in community foundation by more than 200%. In recent years, Maryland, North Dakota, and Montana have established similar tax credits. In addition, Ohio, Indiana, and Minnesota are in the process of trying to enact “endow” tax credits. In 2015, WPN commenced its Endow Wisconsin Initiative.
Endow Wisconsin Taskforce
The Endow Wisconsin Taskforce membership spans throughout Wisconsin regions and includes community foundations, a donor advised fund holder, a tax attorney, and other philanthropic leaders.
Current Taskforce membership includes:
- Amber Kiggens-Leifheit (Marshfield Area Community Foundation)
- Barb Daus (Community Foundation of Southern Wisconsin)
- Cindy Tang (Donor-Advised Fund holder)
- Jean Tehan (Community Foundation of North Central Wisconsin)
- Jason Kohout (Foley & Lardner)
- Karin Werner (Foley & Lardner)
- Madelaine Herder (Duluth Superior Area Community Foundation)
- Rebecca Thompson (Wisconsin Community Health Fund)
- Sandi Roehrig (Fond du Lac Community Foundation)
- Tim Larson (Greater Milwaukee Foundation)
- Rebecca Deschane (Wisconsin Economic Development Corporation)
- WPN Staff: Jill Van Calster, Amanda Buckley, Caty Bulgrin, Laura Worcester
Wisconsin Transfer of Wealth Study – 2006 (Don Macke – Nebraska CF)
- Estimate that during the next 50 years Wisconsin will experience an estimated $687 billion in inter-generational wealth transfer
- Looking at only the next decade (2000 through 2010) we estimate that the intergenerational transfer of wealth will be $105 billion (or 19.3% of the 50 year TOW estimate). This estimated represents an annualized transfer opportunity of $10.5 billion.
- If just five percent of the wealth being transferred over the next 10 years were pledged to community-based endowments, a cumulative endowment of $5.3 billion could be created. Such a collection of endowments prudently invested and managed, could generate $263 million of charitable investments into communities each year. These endowments could mean new resources essential to building stronger communities throughout Wisconsin. This estimate assumes a conservative five percent payout rate annually.
For More information visit our Transfer of Wealth Webpage
Endow Iowa bill passed in 2003 - “To promote philanthropic giving to permanent endowment funds at qualified community foundations and their affiliates across the state.” “As of January 2010, approved tax credits will be equal to 25% of a tax payer’s gift to a permanent endowment held in an endow Iowa qualified community foundation.” At this time, there is a total authorized tax credits of $6 million. Since its inception, community foundations have leveraged over $168 million in permanent endowment gifts which consists of over 21,000 donations. The Endow Iowa tax credit, in place since 2004, has grown annual giving to permanent endowment in community foundation by more than 200%.
- Approximately $6 million in tax credits were awarded.
- Applications show that approximately $24 million in charitable giving were leveraged by the credits.
- Donations went to 103 different community foundations and affiliates.
- The $24 million dollars in donations comprised of 3,898 separate donations. Of those 286 were from business establishments or financial institutions. The remaining were from individual donors.
Endow in other states
In recent years, Maryland, North Dakota, and Montana have established similar tax credits.
Minnesota – 2015
- Those who contribute to the permanent endowments of local community foundations will receive a tax credit of 25 for gifts between $5,000 and $100,000 annually (ranging from a minimum tax credit of $1,250 to a maximum of $25,000). Up to $4 million in tax credits will be awarded each year.
- Provisions would sunset in 15 year.
Ohio - 2015
- Any Ohio taxpayer to receive a tax credit for charitable gifts to a permanent endowment at an eligible CF. Donors would receive a 50% credit on gifts up to $1,000 (aggregated) and a 20% credit on contributions over $1,000. The nonrefundable tax credit limit would be set at up to $10,000 for individuals and $20,000 for joint filers. The total pool of credits available from the state is set a $20 million
- Provisions would sunset in 2019.