A Guide to the Endow Kentucky Tax Credit Program

Double the Benefit: Invest in CMA’s Future While Reducing Your State Taxes

The Endow Kentucky Tax Credit program allows Kentucky taxpayers to receive a state tax credit of up to 20% of their gift to a permanent endowment. By contributing to the Central Music Academy Endowment at Blue Grass Community Foundation, you ensure that tuition-free music education remains available for Lexington’s youth in perpetuity.

Why Participate in Endow Kentucky?

  • Tax Credit vs. Deduction: This is a tax credit, which lowers your tax bill dollar-for-dollar regardless of your tax bracket. You may also still be eligible for a federal charitable gift deduction.

  • Significant Savings: Eligible donors can receive a Kentucky income tax credit of up to 20% of the gift value, with a maximum credit of $10,000 per taxable year.

  • Carry Forward: If you cannot use the full credit in one year, it may be carried forward for up to five years.

  • Flexible Giving: While there is no minimum gift size to qualify for the credit, the maximum gift allowed under this specific program is $50,000.

  • Qualified Assets: In addition to cash, you can contribute publicly traded securities, IRA qualified charitable distributions (QCDs), and even real estate.

The Application Process: "Apply Before You Give"

To secure your credit, you must follow a specific sequence. Do not send your gift until you receive preliminary approval from the Kentucky Department of Revenue (DOR).

  1. Prepare Your Application Early - A $1 million tax credit pool becomes available every July 1. Applications received between July 1 and July 7 receive a prorated portion of the pool; thereafter, credits are allocated first-come, first-served. Access an application here.

  2. Submit Your Application (Starting July 1) - The DOR will not accept applications before July 1. Applications can be submitted via email, fax, or hand-delivery—do not mail them. You can submit directly to the DOR or send your application to BGCF by July 1, and they will submit it on your behalf.

  3. Wait for Approval - The DOR typically sends an approval letter via secured email or certified mail within three weeks of your application.

  4. Make Your Gift Within 30 Days - Once approved, you must make your contribution to the Central Music Academy Endowment at BGCF within 30 days. Make checks payable to Blue Grass Community Foundation and note "Central Music Academy Endowment" in the memo line.

Need assistance?

Blue Grass Community Foundation is available to help you navigate the application to ensure you don't miss out on this unique opportunity.

Blue Grass Community Foundation Contact Information:

  • Address: 499 East High Street, Suite 112, Lexington, KY 40507

  • Phone: 859.225.3343

  • Email Support:

Disclaimer: Central Music Academy is not a tax or financial advisor. This webpage is for informational purposes only. Please consult with a qualified professional before making any financial decisions.