North Dakota Tax Credit
Recent North Dakota legislation increases the opportunities for North Dakota taxpayers to receive a generous 40 percent state income tax credit for charitable contributions to organizations like The Salvation Army.
Charitable Gifts = 40% Tax Credit
Your gift does triple duty: 1) Qualifying gifts over $5,000 benefit you through a 40 percent North Dakota state income tax credit. 2) It funds services to help people today. 3) It will provide a guaranteed source of income The Salvation Army can rely on to meet future needs.
- 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
Note: This charitable gift annuity example is not for professional tax or legal advice.
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.
- Gifts under $5,000 do not qualify for this credit, but are still tax-deductible (give online).
If you could use this generous tax credit, contact your tax adviser or The Salvation Army’s planned giving office:
North Dakota Planned Giving Director
Brad Bame, 701-405-3049