NDANO works with the National Council of Nonprofits and its state association network to monitor federal legislative issues and distributes biweekly newsletters to members.
Proposed IRS Regulations on State Giving Tax Credits
Comments Due Oct. 11
On Aug. 27, 2018, the U.S. Treasury Department and the IRS announced draft regulations designed to change how the federal government will treat donations to charitable nonprofits that generate state or local tax credits. The proposed IRS rules would result in a reduction of the charitable contribution deduction allowed for donors that benefit from the North Dakota's endowment fund and other state giving tax credits.
Two Points to Remember:
- These are proposed regulations.
- The proposed regulations only impact those donors who itemize.
North Dakota Impact:
Eide Bailly has prepared an article summarizing the proposed regulations and outlining the potential impacts in North Dakota, including scenarios for a $10,000 contribution qualifying for North Dakota's 40 percent tax credit. Download the article.
Background and Comment Tips:
TAKE ACTION - SUBMIT COMMENTS TO IRS:
Comments are being accepted by the IRS until Oct. 11. NDANO encourages North Dakota nonprofits to join us in submitting comments to the IRS asking them to either withdraw the regulations or modify them to prevent long-standing, beneficial state tax credits, such as the North Dakota Endowment Fund Tax Credit, from being stripped of their ability to incentivize giving to nonprofits that support citizens and communities across our state.
NDANO invites North Dakota nonprofits to use our comments to begin drafting your own. Within your comments, we urge you to:
- Describe how North Dakota's endowment fund or other state giving tax credit supports the work of your nonprofit, especially in terms of fundraising and program goals. Be sure to include any relevant anecdotes and statistics.
- Provide any details you have about how reduced giving will reduce your organizational capacity to meet your mission goals.
If your nonprofit is not comfortable offering potential solutions to the proposed regulations, simply urge the IRS not to move forward with the regulations and start over to draft regulations that do not negatively impact donations that help your organization meet community needs.
Preserving Nonprofit Nonpartisanship
The Johnson Amendment is the longstanding law that protects charitable organizations from demands for political endorsements and engagement in other partisan activities. NDANO strongly believes current law requiring charitable nonprofits to remain nonpartisan is the best way to advance missions and work as partners with all levels of government. Learn more.
Support for Charitable Giving Incentives
NDANO supports continuation of the federal charitable deduction, as well as a universal, or non-itemizer, deduction. Learn more.