The Foundation supports proposed new legislation
If a new state tax credit is approved, charitable donors could soon see a financial return on their generosity. The Wisconsin Philanthropy Â Network is spearheading Endow Wisconsin, an initiative designed Â to enhance Â individual and corporate support at each ofÂ Wisconsinâ€™s 19 nationally accredited community foundations, including Â Madison Community Foundation, which serves Dane County and communitiesÂ throughout the region.
Proposed in the state budget as a new tax credit, Endow Wisconsin encourages donors to keepÂ dollars in Wisconsin by providing a valuable Â incentive for Wisconsinites to share a portion of their hard-earned assets with their hometown communities. Â Adoption of the tax credit has the potential to raise significant dollars for use in Wisconsin while requiring Â only a modest investment from the state.
If the Endow Wisconsin tax credit is approved, it is anticipated Â that Wisconsin individuals and corporations who make a contribution to an accredited Â community foundation inÂ 2018 can claim the tax credit when they file theirÂ 2018 taxes.
â€œGenerous people Â who live in Wisconsin will have the opportunity through the tax credit to donate to an endowment Â at a certified community foundation, Â receive Â a 25% tax credit on their Wisconsin taxes for their gift, and have the satisfaction of knowing Â their gift supports important causes Â and organizations that make our communities great,â€ says Jill Van Calster, president and CEO of the Wisconsin Philanthropy Network.
According to Van Calster, if the state approves the proposed $3 million investment in Endow Wisconsin, it will result in $12 million being contributed to Wisconsin accredited community foundations. The actual impact to each of the 19 accredited Â statewide Â foundations will vary.
Why does Wisconsin need to incentivize its residents to give? The snowbird effect is real: Demographic shifts can result in assets being channeled Â to other states rather than used to strengthen Wisconsin hometownsÂ and neighborhoods. According to â€œWealth in Wisconsin,â€ a transfer of wealth study, approximately $687 billion is projected to pass from one generation of Wisconsinites to the next. Keeping a portion of this wealth in Wisconsin through a tax credit incentive presents a unique opportunity Â to grow assets that will enhance Â communities.
â€œWisconsinâ€™s community foundations are one of our stateâ€™s best-kept secrets,â€ says Bob Sorge, president of the Madison Community Foundation.
Madison Community Foundation stands to benefit from Endow Wisconsin tax credits, and so do local causes it supports.Â Mirrored after the success of similar programs in other states â€” most notably Iowaâ€” Endow Wisconsin has the opportunity to strengthen the nonprofits in Wisconsin communities. Since its inceptionÂ in 2003, the Endow Iowa tax credit has leveraged Â nearly $192 million in support of its statewide Â nonprofits through contributions made to permanent Â endowments Â at their community foundations.
Other successfully Â endowed Â states include North Dakota and Kentucky, while Â legislation has been proposed in other Midwestern states including Minnesota, Ohio, Indiana, and Illinois.
Endowments fuel jobs, housing, food systems, cultural centers, youth programs, and a myriad of essential Â services that strengthen Wisconsin communities.
â€œPhilanthropy is a great thing,â€ states Van Calster, â€œbut philanthropy Â that pays the donor back is even better.â€
â€” Jason Busch, from the April 2017 edition of Greater Madison In Business