An income tax credit is available for an individual that makes a qualified planned gift to a qualified nonprofit organization or a qualified endowment fund.
The credit must be claimed first in the tax year in which the planned gift is made. The unused portion of a credit for a planned gift made in the tax year may be carried forward for up to three tax years.
Qualifications
“Planned gift” means a gifting method using a charitable remainder unitrust, charitable remainder annuity trust, pooled income fund, charitable gift annuity, charitable lead unitrust, charitable lead annuity trust, deferred charitable gift annuity, charitable life estate, or paid-up life insurance policy.
- A qualified endowment fund means a permanent, irrevocable fund held under/within a qualified nonprofit organization that meets all the following:
- It is held by a qualified nonprofit organization (defined below) or by a bank or trust company on behalf of a qualified nonprofit organization.
- It is comprised of cash, securities, mutual funds, or other investment assets.
- It is established for a specific religious, educational, or other charitable purpose.
- It may expend only the income generated by, or the increase in value of, the assets contributed to it.
- For the purposes of this credit, a qualified non-profit organization is defined as one of the following:
- An organization incorporated or established in North Dakota and has a physical presence in North Dakota and is a tax-exempt organization under I.R.C. § 501(c) that qualifies as a charitable organization under I.R.C. § 170.
- An organization incorporated or established in a state bordering North Dakota that is a tax-exempt organization under I.R.C. § 501(c) that qualifies as a charitable organization under I.R.C. § 170; and supports or benefits a hospital, nursing home, or medical center, or any combination of these, that is located outside North Dakota but within five miles of a North Dakota city with a population of 5,000 or more that does not have a hospital.
Credit Amounts
The credit is equal to 40% of the contribution and the maximum allowable credit for a tax year is $10,000 ($20,000 if married filing joint). North Dakota taxable income must be increased by the amount of the contribution upon which the credit is computed to the extent the contribution reduced federal taxable income.
Application Process
Not Applicable.
How to Claim
If you're filing as a/an: | Claim the credit on: |
| Individual or Sole Proprietor | Schedule ND-1PG, Planned Gift Credit |
| C Corporation | Not Applicable |
| S Corporation | Not Applicable |
| Partnership | Not Applicable |
| Fiduciary | Not Applicable |