The NDAFP Foundation established an Endowment Fund in 2007 to provide a perpetual source of income for critical programs and services offered by the North Dakota Academy of Family Physicians Foundation. In 2012, we teamed up with the Dakota Medical Foundation (DMF) to both increase our visibility and to hopefully raise more funds as others become aware of our mission. The DMF-NDAFP Foundation Endowment Fund is a permanent fund that allows us to invest all tax deductible financial contributions and utilize the earnings to support the non-profit mission-driven activities NDAFPF provides. These include education, research, and operations, all of which depend on charitable contributions to continue to work.
The North Dakota legislature, in an effort to promote donations to charitable organizations, has provided the opportunity for donors in North Dakota to receive tax credits for gifts of $5000 or more made to qualified North Dakota endowments. This tax credit makes it possible for individuals and financial institutions to give more, and through their contributions, have a greater impact on the state’s quality of life. The following will demonstrate how to make your donation go farther.
Planned gifts by individuals qualify for an income tax credit of 40 percent for gifts up to a maximum credit of $10,000 per person, $20,000 for a married couple with any excess unused credit to carry for
ward 3 years. This tax credit for planned gifts is also unique to North Dakota and gives North Dakotans a remarkable opportunity to make meaningful gifts to their favorite charities and in return receive significant reductions in their income tax bills.
An individual may receive a 40 percent tax credit for contributions of $5,000 or more (lump sum or aggregate in one year) to a qualified North Dakota endowment. If a donor is in a 28 percent federal tax bracket, the tax benefit may look like this:
|Federal tax deduction||-$1,400||-$7,000||-$14,000|
|N.D. state income tax credit||-$2,000||-$10,000||-$20,000|
This information is provided for educational purposes only. Please consult your own attorney, accountant or financial advisor for advice on your situation.