Donation Tax Credit

North Dakota State Tax Credit and YOU!

Imagine making a gift of $5000 to your favorite charity and finding out that its real cost is only $1600!  That’s not imagination if you are a North Dakota resident.

If you are in a 28% tax bracket, as many people are, that is exactly what will happen if your gift qualifies for 40% ND state tax credit under the recently expanded Senate Bill in 2005 and 2007.

This donation tax credit now includes out-right gifts to qualified endowment funds made by businesses as well as individuals.  The credit applies to some forms of giving that can provide income during your retirement years, such as charitable gift annuities.

“This tax credit is a real blessing for the individuals we serve and the service dogs we train,” says Shelley Nannenga, Service Dogs for America Development Director.  Like many other nonprofits providing services to individuals with physical and financial life challenges.  Our goal is to empower individuals to gain greater independence and autonomy by the use of a trained and certified assistance dog. This only happens because of very generous donors.

“We place 10 – 15 service dogs per cycle.  Most individuals we serve do not have funds to receive a service dog, but their needs override that issue.  Our mission is not to add excessive financial burden to those using our program.  We are hopeful that individuals and businesses will take advantage of the tax credit which will increase our ability to deal with increasing cost and case loads.”

For more information on Senate Bill #2160 and how it can help your estate planning, please contact your tax advisor or our Development Director at (701) 685-5002 or


Gifts that Qualify for 40% Tax Credit

  • Outright gifts to qualified endowment funds
  • Charitable gift annuities (current and deferred)
  • Certain charitable trusts
  • Certain paid-up life insurance policies
  • Pooled income fund trusts
  • Charitable life estate trusts

Typical Tax Credit Benefit for Endowment Gifts

Cash Gift        Federal Tax Deduction at 28% TB         ND State Income Tax Credit             NET COST

  $5,000                          $1,400                                   $2,000                                   $1,600

$25,000                         $7,000                                 $10,000                                  $8,000

$50,000                      $14,000                                 $20,000                                $16,000

Please consult with your attorney, tax advisor or our Development Director to make sure your gift(s) meet the requirements for the credit.  All gifts must be qualified as gifts under Federal law.