North Dakota is generous to tax payers that give.
The State of North Dakota allows a direct credit against taxes for individual and corporate gifts to qualified endowments. Individuals and businesses paying North Dakota income tax may qualify for a 40% tax credit with a minimum gift of $5,000 or more to our endowment.
– Businesses: The maximum tax credit is $10,000 (this includes C corporations and S corporations, estates, limited liability companies, trusts and financial institutions).
– Individuals: The maximum tax credit is $10,000 per year – per taxpayer, or $20,000 per year – per couple filing jointly.
(Any excess unused credit can be carried forward for three years. Your gift can be made in the form of cash, charitable gift annuities, life insurance policies, stocks, mutual funds, real estate and other methods.)
Q. What does it cost to fund an endowment?
A. A personal or business endowment requires a minimum $5,000 commitment.
Q. Will distributions be made from my fund soon after it is established and fully funded and how much will be distributed? Does the Foundation charge an administrative fee?
A. According to the Foundation’s current spending policy, 4.5 percent of the fund’s value is available for distribution annually. The distribution amount is determined by using an annual rolling five (5) year average of the market value of all assets in the fund as of the last day of each calendar year. This helps to reduce the fluctuation in grant distributions from year to year. The Foundation charges NO administrative fees.
Q. Why doesn’t the Foundation distribute more?
A. The true value of an endowed fund is not just the benefit it can do today. The real power of endowment is in the long-term growth of the fund over time. Contributions you make today will grow and multiply over the years, benefiting many generations. As the principal balance of your fund continues to grow, the earnings from that fund are spent each year to benefit North Dakota State Fair facilities and programs.
Q. Can I customize the name of my endowment?
A. Yes. You can name an endowment after your business or family name.
Q. Can I stipulate a specific purpose for my endowment?
A. Yes, as long as it fits within the overall purpose and mission of the North Dakota State Fair Foundation. Endowments are designed to provide funding to enhance facilities and programs. There is great flexibility in designing an endowment.
Q. How can an endowment be funded?
A. Gifts of cash and publicly traded securities are ideal assets that can be easily given to fund an endowment. Real estate, life insurance, tangible personal property and other similar assets may also be given as long as they meet the requirements of the Foundation’s Gift Acceptance Policy.
Q. Can I also make plans to fund an endowment through my estate?
A. Yes. In fact, many endowments have been funded through bequests. The North Dakota State Fair Foundation can be named in your will to receive a portion of your estate with the condition that it be used to create an endowment.