Seed Funds - Story County Community Foundation | Grants & Tax Credits

Seed Funds

Seed Funds:

  • make long-term philanthropy accessible to more people
  • are an easy way to give back forever

Overview of Seed Funds--click here

What is a Seed Fund?

A Seed Fund is the first step toward establishing an endowment fund. It allows donors to build the fund's original capital over a period of time. A Seed Fund may be established for most types of funds including Donor-Advised Funds, Designated Funds, and Committee-Advised Funds.

  • Gifts to a seed fund can be made using cash, credit card, stocks, mutual funds, property, grain, or other vehicles.
  • A minimum of $1,000 is required to open a seed fund.
  • A minimum annual commitment of $600 is required until the Fund reaches $10,000. When the fund reaches $10,000, grants of up to 5% of the previous year's fund balance may be disbursed to charitable causes or organizations.
  • No grant distributions may be made from the fund until it reaches $10,000 and matures into a full fund.
  • Gifts are tax-deductible.
  • Gifts are eligible for a 25% Endow Iowa tax Credit in addition to the normal federal charitable income tax deductions if made to a permanently endowed fund that supports an Iowa charitable cause.
  • No administrative fees charged while the fund grows (not available for agency/nonprofit funds).
  • Can access fund statements and monitor fund growth online. Seed funds are an easy and accessible way to achieve long-term philanthropy that builds charitable assets forever.
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