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Qualified North Dakota Endowments

The state of North Dakota provides tax credits for gifts to qualified endowments (see details at bottom of page). Below is a self-reported list of NDANO members that have a qualified nonprofit. This list is provided for informational purposes only; donors should use due diligence in determining where to allocate their charitable contributions and should consult their attorney, accountant or financial advisor for advice.

Current North Dakota Law*

State Tax Credit for Planned or Deferred Gifts Individuals may receive a state tax credit for a planned gift (e.g., charitable remainder trusts, charitable gift annuities, life insurance policies, etc.) to a qualified N.D. charitable nonprofit or a qualified N.D. endowment. The tax credit is 40% of the charitable deduction allowed by the IRS up to a maximum credit of $10,000 per year per taxpayer or $20,000 per year per couple filing jointly. Effective for taxable years starting in 2007.

State Tax Credit for Endowment Gifts

Businesses (C corporations, S corporations, estates, limited liability companies, trusts and financial institutions) that pay state income tax may receive a 40% credit up to a maximum credit of $10,000 for contributions to a qualified N.D. endowment. Effective for taxable years starting in 2007, except for financial institutions effective in 2011.

Individuals may receive a state tax credit for a contribution of $5,000 or more (lump sum or aggregate in one year) to a qualified N.D. endowment. The tax credit is 40% of the charitable deduction allowed by the IRS up to a maximum credit of $10,000 per year per taxpayer or $20,000 per year per couple filing jointly. Effective for taxable years starting in 2011.

Definitions under State Law

Qualified nonprofit organization – a N.D. incorporated or established 501(c)(3) organization to which contributions qualify for federal charitable income tax deductions with an established business presence or location in North Dakota.

Qualified endowment – a permanent, irrevocable fund (comprising cash, securities, mutual funds or other investment assets established for a specific charitable, religious or educational purpose and invested for the production or growth of income, or both, which may either be added to principal or expended) held by a qualified nonprofit organization, a community foundation or a bank or trust company holding the fund on behalf of a qualified nonprofit organization.

*See ND Century Code 57-38-01.21.