Now is a good time for North Dakotans to make a donation to the N.D. 4-H Foundation.
North Dakota allows an income tax credit of 40 percent of a donation of $5,000 or more in cash or a deferred gift to a nonprofit organization’s qualified endowment fund. The North Dakota 4-H Foundation has a qualified fund, said Penny Dale, N.D. 4-H foundation manager.
The foundation is a nonprofit organization that secures and manages resources that allow North Dakota 4-H to enhance and expand its programming, and is starting a donor development project.
An income tax credit is limited to $10,000 per year for individuals and businesses, and $20,000 per year for a couple.
This opportunity is not the same as a charitable deduction. A charitable deduction reduces the amount of income subject to taxation. Participating in a qualified endowment provides a tax credit that is a dollar-for-dollar reduction in North Dakota tax liability. Taxpayers can carry an unused credit forward for three years.
After taking advantage of the state income tax credit and a federal tax deduction, a $5,000 donation, for example, could have a net cost of $1,600.
“This tax credit for planned gifts is unique to North Dakota and gives North Dakotans a remarkable opportunity to make meaningful gifts to support North Dakota 4-H and decrease their income tax obligation,” says Brad Cogdill, chair of the North Dakota State University Extension Service’s Center for 4-H Youth Development.
Contact the North Dakota 4-H Foundation at 701-231-8569 for more information about making a contribution to its qualified endowment fund.
0105 Penny Dale FRG.jpg -- Penny Dale, North Dakota 4-H Foundation manager (Photo courtesy of 4-H/Air Force Partnership)