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Federal Policy

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

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:

  1. These are proposed regulations.
  2. 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:

The National Council of Nonprofits shares background on state and local taxes (SALT) and tips for submitting comments on draft federal regulations.

Status:

NDANO's comments to the IRS were submitted by the Oct. 11 deadline. A hearing was held in Washington, D.C., on Nov. 5, but no further action has been taken. NDANO is tracking this issue and will share information with North Dakota nonprofits as soon as the IRS makes a decision regarding the proposed rules.

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.

Federal Policy Resources