$4,000 Endowment Gift !
I got a really good surprise recently. A family that has supported our Blessing Hands students for 11 years has given to our Blessing Hands Endowment Fund with the Blue Grass Foundation. They received an Endow Kentucky Tax Credit of 20% of their $4,000 gift. We also received a $5,000 endowment gift as a prize for our performance in the GoodGiving Challenge in December 2015. That gives us $9,000 in endowment giving this year and a total endowment of over $50,000.
The state legislature is doing this to encourage community foundation giving. Unlike tax deductions, tax credits are taken off a tax bill dollar for dollar. This credit can reduce a donor's Kentucky tax bill to zero. For example, a gift of $4,000 can eliminate a tax liability of $800. This is in addition to the federal and state tax deduction you receive by giving the donation.
Blessing Hands will get income from our fund each year while the principal of the fund continues to grow. Our endowment fund will insure that Blessing Hands continues to help Chinese students for years to come.
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