North Dakota Tax Credit
Charitable Gifts = 40% Tax Credit
Recent North Dakota legislation increases the opportunities for North Dakota taxpayers to get a generous 40 percent state income tax credit for charitable contributions to organizations like The Salvation Army.
With this credit alone, you can make a gift of $5,000 to The Salvation Army endowment fund for a net cost of just $3,000 after the North Dakota tax credit. And, when you consider federal tax deductions, net cost can be even less, depending on your tax bracket.
- The credit is available to both individuals and businesses
- The minimum qualifying gift is $5,000 (lump sum or aggregated over the tax year)
- Both outright and planned gifts can qualify
- The maximum credit for a single tax year is $10,000 for an individual, $20,000 for a married couple and $10,000 for business entities. There are provisions for carryover.
Three Ways to Get the Tax Credit
- Make an outright gift to a qualifying Salvation Army endowment fund. Your gifts can be in the form of cash, securities or real estate.
- Make a planned gift to The Salvation Army such as a charitable gift annuity; certain forms of charitable trusts and paid-up life insurance may qualify.
- Make an outright gift to a qualifying Salvation Army endowment fund.
Outright Endowment Gift Tax Credit Examples
Tax Credit Plus Income for Life with a Charitable Gift Annuity
Important Points to Remember
- This is a North Dakota tax credit, not a deduction.
- The contribution can still be deducted from your Federal income taxes.
If you could use this generous tax credit, contact your tax adviser or The Salvation Army’s planned giving office:
Minnesota and North Dakota Planned Giving Director
David Overstake, 651-746-3504
North Dakota Planned Giving Representative
Anthony Hebert, 701-219-9675