NORTH DAKOTA TAX CREDITS FOR CHARITABLE GIVING

Significant tax incentives are available to North Dakota taxpayers who support qualified North Dakota charitable organizations.  West River Health Services Foundation is considered a qualified charity. 

The tax incentives focus on two types of giving:

1. Deferred giving…irrevocable planned gifts made by individuals. An individual North Dakota taxpayer is allowed a state tax credit in an amount equal to 40% of the present value of a charitable gift. The maximum credit is $20,000.

2. Outright giving…gifts made by business entities.  A North Dakota business is allowed a state tax credit of up to $10,000 for gifts to qualified charitable endowments. This credit is computed at 40% of the amount of the gift.  The annual limitation on this credit is $10,000. Eligible gifts of up to $25,000 per year will bring about the maximum tax credit. Outright gifts may be declared as a charitable deduction on your federal income tax return for the year you make the gift.

The hypothetical example below shows the tax benefit of a charitable endowment tax credit for a tax payer in the 40% federal tax bracket:

Gift amount	$5,000	$10,000	$25,000
Federal tax deduction	-$2,000	-$4,000	-$10,000
N.D. state tax credit	-$2,000	-$4,000	-$10,000
Net cost	$1,000	$2,000	$5,000

 

A qualifying gift to West River Health Services Foundation can enable a North Dakota taxpayer to enjoy the benefits of this tax credit. All donors are encouraged to seek out a professional advisor to determine how the credit would apply to their specific situation.

For more information call 701-567-6187.