1. Planned Giving
  2. North Dakota Tax Credits

North Dakota Tax Credits

A gift directed to an Altru Health Foundation endowment changes lives by ensuring exceptional care and compassion is available to all whenever, and wherever, it is needed. Your generosity will directly impact the patients and families we are privileged to care for throughout our community not only today, but in the future. The state of North Dakota allows for a direct credit against North Dakota taxes for individual and corporate gifts made to qualified North Dakota endowments.

Requirements

  • Must be a North Dakota resident filing ND taxes
  • Minimum $5,000 (in a calendar year) to a qualified North Dakota charity and qualified fund.
  • The $5,000+ gift can be multiple gifts made to same endowment throughout the year (such as through a pledge)

Benefits

  • ND tax credit calculated as 40% of the gift amount
  • Minimum gift of $5,000 provides $2,000 tax credit ($5,000 x 40%)
  • Maximum ND tax credit for single filer is $10,000
    • Gift amount for full tax credit is $25,000 ($25,000 gift x 40% = $10,000 credit)
  • Maximum ND tax credit for joint filer is $20,000
    • Gift amount for full tax credit is $50,000 ($50,000 gift x 40% = $20,000 credit)
  • Unused state tax credit in a year may be carried forward for up to three additional tax years.
  • Federal taxes, assuming the donor qualifies for deductions, will be an additional benefit to the ND state tax benefits.

Example of 'cost' to make a $25,000 gift to a qualified fund:

  • $25,000 gift
  • $10,000 North Dakota tax credit ($25,000 x 40%)
  • $15,000* 'cost' to make a $25,000 gift

*This is an example only. While the North Dakota tax credit is 40% times the gift amount, the Federal tax credit has many variables that will be different for each tax payer and thus the Federal benefit, if any, will vary from individual to individual. If you qualify for a Federal tax deduction the amount of tax savings will be greater and the 'cost' of the gift less. Please discuss with your tax professional for an accurate figure.

Definitions:

A tax credit is a direct reduction to the previously computed tax. Superior to a deduction.

A tax deduction is a reduction in income subject to taxation.