Donating Mineral Rights
If you own land rich in oil, gas, or other minerals, you may have to pay high income taxes due to production. There are several basic ways you can use your land while managing your income favorably:
- Gift All or a Portion of your Land or Minerals: By giving all or a percentage of your ownership to the North Dakota Community Foundation for the benefit of the fund of your choice, you may be entitled to take an income tax deduction for the appraised value of the portion you give.
- Gift of Royalties: Donating a portion of your royalties may allow you to achieve your charitable goals while lowering income and reducing your taxes.
- Charitable Remainder Unitrust: You can create this giving tool with a gift of land and/or mineral interest. You will receive a charitable income tax deduction and payments based on a percentage of the trust's value each year. You can establish the unitrust percentage, the person(s) to receive the income from the trust, and the charities that will receive the remainder of the trust after all the income payments have been made.
- Charitable Life Estate: You can gift your home, farm or ranch to charity while retaining a "life estate", which is the right for you to continue to use the land for as long as you live. You receive an immediate income tax deduction for your gift.
The North Dakota Community Foundation has over 800 funds that benefit communities, schools, and nonprofit organizations in the state. Examples of our funds include:
- 69 local Community Foundations: McKenzie County, Tioga, Powers Lake, Dickinson, Bowman & Slope County, Kenmare, and others.
- School Foundations in Grenora, Powers Lake, Divide County, Watford City, Alexander, Minot, Park River, Ellendale, and other districts across the state.
- Permanent endowment funds that support Nonprofit Organizations including: the Abused Adult Resource Center, Badlands Ministries, Dickinson Public Library, Enchanted Highway, Farm Rescue, Furry Friends Rockin' Rescue, ND Adult & Teen Challenge, ND FFA Foundation, Save The Maah Daah Hey Trail, and many others.
- You could create a fund for the community, school, or nonprofit organization of your choice
- You could use your mineral rights or land to create a donor-advised fund and determine where grants should go every year.
There are many options and you may want to discuss ideas with one of our charitable-giving experts. These conversations are free, confidential, and you are under no obligation to give. However, we can share helpful (and personalized) illustrations of various charitable-giving vehicles to help you determine what you want to do. Feel free to contact one of them today.
NDCF Development Directors and Charitable-Giving Experts: