Don’t You Want a 40% North Dakota State Tax Credit? Plus Federal Tax Credits If You Itemize?

Of course you do! For a $5,000 or more gift (lump sum or aggregate in one year) to our West River Health Services Foundation’s qualified Endowment Fund, you can receive a 40% tax credit from the state of North Dakota. Individually, you can give up to a maximum of $25,000 (which would provide you with a $10,000 tax credit); if filing jointly, the maximum gift is $50,000 (providing you and yours a $20,000 tax credit). This legislation was passed in 2011 by the North Dakota state legislature. And who knows how long this tax credit incentive will be here

This past month, a long-time friend of the WRHS Foundation gave a $5,000 gift to our Endowment Fund. She will receive a 40% North Dakota tax credit or $2,000 back. Plus, if she itemizes her federal taxes, she could receive another 30% or $1,500 back (if that is her federal tax bracket). We looked at all of the alternatives, with the aid of a local financial planner, and decided this was the best tool for her to use. So, for her $5,000 gift to help improve local healthcare, she could receive up to $3,500 in tax credits! So in retrospect, her $5,000 gift really only cost her $1,500

In fact, for this awesome 40% ND state tax credit, you do not need to itemize. Any unused credit can be carried forward for another three years. There are also potential 40% ND state tax credits for IRA distributions, planned or deferred gifts such as trusts, annuities, life insurance policies, etc

Businesses can also participate in this amazing tax credit program. 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 to a qualified ND endowment fund. This means they could potentially give $25,000 to receive their maximum $10,000 tax credit

Over the last two and half years, the WRHS Foundation has accumulated over $82,000 in its Endowment Fund, mainly through gifts of $5,000-$10,000 from local area believers. The principal has been conservatively invested, leaving the interest for the Foundation to spend for needed equipment and facilities. We’d like to see this Endowment Fund surpass $200,000 before 2020. Then we’d have some considerable interest to spend wisely and yearly

If you have any questions regarding this terrific North Dakota tax credit, please contact Ted Uecker at the WRHS Foundation at 701-567-3666. The Foundation is here to provide fundraising and development services for West River Health Services and Western Horizons Living Centers as they provide comprehensive health and wellness services to the residents and visitors of our region. In a nutshell, we do our very best to raise funds to improve your top-notch healthcare “close to home.” This particular Endowment Fund investment is a win-win situation for you (via tax credits) and for our local community’s healthcare (via the interest from the principal, for needed equipment and facilities). Onward!

Tax Credits For Charitable Gifts In North Dakota

Gift Amount                $5,000             $25,000           $50,000

ND Tax Credit             $2,000             $10,000           $20,000


Federal Tax Credit      $1,500             $ 7,500            $15,000


Net Cost of Gift           $1,500             $ 7,500            $15,000

This information is provided for educational purposes only. Please consult your attorney, accountant or financial advisor for advice on your situation.

By Ted Uecker, WRHS Foundation

News - 2016