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What is the
North Dakota Community Foundation? |
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The North
Dakota Community Foundation is a statewide community foundation with
a mission of improving the quality of life for North Dakota’s
citizens through charitable giving and promoting philanthropy.
The Foundation is considered a public charity and as such,
gifts to the Foundation qualify for maximum tax deductibility under
IRS Regulations. The Frequently
Asked Questions will give you some background on
the Foundation and how it might be the right answer to your own
charitable questions. |
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North Dakota’s
new and improved tax credit for gifts to
North Dakota Community Foundation Funds |
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The information below
concerns a new law passed by the 2007 North Dakota Legislature. This
law will be quite helpful to the North Dakota Community Foundation
and all of our component funds as it allows for generous tax credits
for the types of gifts outlined below. Also, don’t forget the
Charitable IRA Rollover as it is set to expire at the end of 2007!
Please feel free to contact Kevin Dvorak [Email]
(701-222-8349) or NDCF Development Director Amy Warnke [Email]
(701-795-1531) for additional information. |
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Individuals
must make a qualified deferred gift to a qualified North Dakota
charity. The North Dakota Community Foundation and all of its
component funds are considered qualified charities. The tax credit
is 40% of the charitable deduction allowed by the IRS up to a
maximum of $10,000 per year per taxpayer or $20,000/yr per couple
filing jointly. The credit may be carried forward for 3 additional
tax years if it cannot all be used in one year. |
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For example,
a couple enters into a $200,000 charitable gift annuity agreement
with the North Dakota Community Foundation. The IRS allows them to
deduct $100,000 from their federal taxable income as a charitable
gift. The couple would qualify for a $20,000 ND Income tax Credit.
They could take up to 4 years to take the credit against their ND
Income tax liability. The credit is limited to the amount of their
income tax liability. |
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Businesses
(C corporations, S corporations, estates, limited liability
companies and trusts) that pay ND income tax may take a 40% credit
for gifts to the qualified endowment fund of a qualified North
Dakota charity. All of NDCF’s endowment funds are qualified under
this law. |
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These are
incredible incentives on top of the already great charitable income
tax deductions and really offer a great benefit for gifts to the
North Dakota Community Foundation and its component funds. |
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Nothing on this webpage is
intended to provide legal or tax advice, please consult your
professional tax advisor for specific information for your
situation. |
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Charitible
Gift Annuities |
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