North Dakota Tax Credit

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 Churches United for the Homeless.

Charitable Gifts = 40% Tax Credit

Your gift does triple duty: 1) It funds services to help people today. 2) It will provide a guaranteed source of income The Churches United for the Homeless can rely on to meet future needs. 3) Qualifying gifts over $5,000 benefit you through a 40 percent North Dakota state income tax credit.

 Summary

·         The credit is available to both individuals and businesses

·         The minimum qualifying gift is $5,000 (lump sum or multiple donations 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.

How to Get the Credit

Individuals:

·         Make an outright gift to the Churches United for the Homeless endowment fund. Your gifts can be in the form of cash, securities or real estate.

·         Name Churches United in your will for a planned gift. A planned gift to The Churches United for the Homeless Endowment Fund through certain forms of charitable trusts and paid-up life insurance may qualify and allow you to leave a legacy.

Businesses:

·         Make an outright gift to the Churches United for the Homeless endowment fund.

Example:

Impact Gift

$5000

$25,000

$50,000

Federal Tax  Savings  deduction

-$1400

-$7,000

-$14,000

ND State Income Tax Credit

-$2000

-$10,000

-$20,000

“Cost” of Gift

$1600

$8,000

$16,000

*Based on 28% tax Bracket
Examples are for illustration purposes only. Please consult your attorney or accountant for specifics to your unique situation.

FYI

·         This is a North Dakota tax credit and a federal deduction. Please contact Babs Coler at Churches United

·         Gifts under $5,000 greatly appreciated but do not qualify for this credit, and are still tax-deductible (give online).

For more information, contact our trust fund manager:

Jon Benson

Heartland Trust Company

701-235-2002

www.heartlandtrust.com