The Nebraska Department of Revenue has determined that the reference to 26 U.S.C. §1011(b) in the Nebraska Charitable Tax Credit legislation [Neb. Rev. Stat. §77-27,228(f) and (g)] requires that a qualifying charitable gift annuity or deferred charitable gift annuity can be made only by way of a "bargain sale" to a qualifying charitable organization's endowment fund.  This would disqualify any general gift annuities (i.e., those funded via donated property of any kind: cash, stocks, bonds, land, crops, etc.) when not made by way of a bargain sale.  Read more on the Department of Revenue website.  For a sample charitable gift annuity, suggested by the Department of Revenue, click here.

Permanent endowments of Nebraska nonprofits have received at least $6.358 million in contributions from 63 Nebraska taxpyers who have received the Nebraska Charitable Tax Credit on their 2006 and 2007 state tax returns.  That is according to reports from the Nebraska Department of Revenue.

There are been $210,232 in total credits approved--$1 for each $30 of endowment donations.  A high percentage of the 221 filings were denied by the department because no documentation was provided with the taxpayer's return.  For the 2007 returns, the Department allowed electronic filings and taxpayers need to provide written documentation before their credit applications can be approved.

Click on 2006 and 2007 to read the Department's reports on each year's filings.

Become a member of EndowNebraska, and support our work for the Nebraska Charitable Tax Credit.  Download our membership form here.  If you would like to pay your dues on-line, through the Nebraska Community Foundation's secure Veri-Sign site, please click here.  Indicate that you are paying membership dues and the amount, according to the dues categories on the membership form.

Build a brighter future for our state...and enjoy a substantial tax benefit. The Nebraska Charitable Tax Credit lets you take up to a $5,000 state tax credit - per year - for planned gifts to the permanent endowment funds of qualifying Nebraska nonprofits! The bill authorizes  a Nebraska Charitable Tax Credit for gifts to the permanent endowments of Nebraska incorporated or established organizations with 501(c) (3) designation from the Internal Revenue Service. The provisions of the bill became effective January 1, 2006 and sunsets on January 1, 2010.

Highlights of the law are:

• a maximum annual credit of $5,000 for individual Nebraska taxpayers and corporations doing business in Nebraska and paying state corporate taxes
• a 15 percent credit for the Federal contribution value of the irrevocable planned gifts from individuals
• a 10 percent credit for outright gifts from corporations

This opportunity is open to both individuals and businesses! But it's important to take advantage of the opportunity soon because the program is scheduled to terminate at the end of the 2009 tax year.  On this site you'll find examples of how certain gifts can affect your taxes and answers to many commonly asked questions.  There are tools for nonprofit organizations and financial advisors, including downloadable brochures to promote the Nebraska Charitable Tax Credit and radio and print media ads suitable for public service announcements and paid advertisements.

Current Statutes and Legislation

To read LB 405, a bill in the 2009 Legislature, to change provisions in the Nebraska Charitable Tax Credit, click here. To review the current Nebraska Statutes for the Nebraska Charitable Tax Credit, click here.  The Credit was established by Legislative Bill 28, passed in 2005.  Legislative Bill 1010 was signed into law by Governor Dave Heineman on April 12, 2006.  It modified the charitable tax credit provided by LB 28.  The Nebraska Charitable Tax Credit is currently scheduled to sunset on January 1, 2010, thus terminating with the 2009 tax year.