A new Maryland tax credit dubbed “Endow Maryland” will reward donors who help build permanent charitable funds for local communities across the state, including Southern Maryland. Endow Maryland is modeled after successful initiatives established by community foundations across the nation.
Starting January 1, 2015, Endow Maryland offers a tax credit for gifts of at least $500 to permanent, endowed funds at qualified community foundations, such as the Community Foundation of Southern Maryland. Qualified donors may receive a 25 percent tax credit on their 2015 Maryland state tax return as an incentive to encourage Maryland residents to give back to their local communities in a meaningful and lasting way. The Endow Maryland tax credit, which is designed to promote charitable giving in Maryland, for Maryland, applies only to gifts to permanent, endowed funds held at your local community foundation—those that will generate many times the initial value of the gift to benefit the community.
The fourteen community foundations in Maryland, provide support in every part of the State of Maryland and have been accredited by the Council on Foundations, National Standards for Community Foundations, a rigorous review of our financial, governance and grant programs.
Each community foundation in Maryland will be sharing the $250,000 in tax credits for 2015. The Community Foundation of Southern Maryland’s initial portion of total tax credits available is $15,000, which is 25 percent of $60,000 in contributions, with the possibility of additional tax credits after this initial portion is claimed. These credits are available on a first-come, first-served basis, and are anticipated to be claimed very quickly.
According to Gretchen Hardman, executive director, “the Community Foundation of Southern Maryland would like to see the tax credits used to create 12 new endowed funds of $5,000 each. Endowments could include historic preservation, or any one of the Foundation’s areas of focus, such as arts and culture, education and scholarships, and the environment. Funds may also be used for general community improvements, such as housing, recreation and transportation, or health, wellness, and youth initiatives. We may also accept an endowment to support operations for the Foundation and our discretionary grant funds.”
Hardman added, “Once this Endow Maryland tax credit goes into effect, it could generate approximately one million dollars in philanthropic donations that will help build permanent charitable good in jurisdictions across Maryland. The potential for good is unlimited.” To find out how to take advantage of the tax credit, see a complete list of endowed funds, or obtain more information, visit the Community Foundation of Southern Maryland website at www.cfsomd.org or call 240-670-4483 (GIVE).