Sept 19, 2005

This year we have been working hard to improve Nebraska’s business climate in order to attract new companies and high-paying jobs to our state. Our goal has been to take advantage of a rebounding economy to invest in the future and benefit all Nebraskans.

Nebraska has a reputation as a great place to do business, thanks in part to the strong work ethic of so many of our residents and also thanks to our commitment to building strong communities.

State leaders worked this year to make Nebraska’s tax climate more friendly to the businesses that will bring jobs to our communities, and we also were successful in approving additional legislation that provides tax incentives for businesses and individuals who invest in the future of this state through donations to nonprofit organizations.

The Endow Nebraska Act, LB 28, was created to provide the charitable organizations dedicated to community improvements, strengthening local schools and higher education institutions and providing support for those in need with the funding needed to encourage continued involvement in Nebraska’s communities.

Endow Nebraska offers incentives as a way to promote private giving to Nebraska-based nonprofit groups that will be used to benefit communities across the state. Donations made to nonprofit groups and foundations such as economic development corporations, community college and university endowments or broader community improvement efforts are examples of donations eligible for tax credits under LB 28.

This bill offers an incentive for people to give back to their communities by helping fund community-centered projects, which help create a strong sense of connection to the community, attract new families to our small towns and ensure their future vitality. It also puts private funds to work for the benefit of the public good, and is one way of ensuring that the hard-earned money of Nebraskans stays here in the state.

The Endow Nebraska organization estimates that some $258 billion in wealth will be transferred to younger generations over the course of the next 50 years here in Nebraska. Without legislation such as LB 28, much of that wealth had the potential to be lost to federal taxes, or withdrawn and used to benefit the development and community projects of other states.

Eleven states have laws similar to LB 28 that provide tax credits for planned gifts to select nonprofit groups. Montana is one state that has already seen a real benefit from providing residents the opportunity to qualify for tax incentives as a result of charitable giving. Recent reports indicate that as much as $74 million has been added to the endowments of Montana nonprofits in the last five years thanks to legislation similar in nature to LB 28.

That is money Nebraska’s nonprofit organizations could soon use to advance local economic development goals, provide for community improvement efforts and continue working to attract companies creating 21st Century jobs for our children and grandchildren. It represents seed money that will fund future growth, develop the attractions that help make our communities more appealing to new generations of Nebraskans, and support the learning of students and researchers around the state.

The Endow Nebraska tax credit will be available for donations made beginning in January, and is another piece of the puzzle that will be used to jump-start investment in our state.

This is a great opportunity to directly engage Nebraskans in efforts to make individual communities and our state stronger through planned-giving. It is my sincere hope that Nebraskans will take advantage of this new opportunity to support the charitable work of countless statewide organizations, and give for the future development of their communities.