North Dakota
Tax Credit
North Dakota 40% Tax Credit for Charitable Giving
The State of North Dakota encourages charitable giving by offering individuals and businesses a 40% tax credit for qualifying gifts. Gifts from individuals must be placed in a qualifying endowment.The tax credit is equal to 40% of the charitable deduction up to a maximum tax credit of $10,000 per year per taxpayer or $20,000 per year per couple filing jointly. The credit may be carried forward for three years.
This unique tax credit also applies to planned or deferred gifts (e.g. charitable trusts, gift annuities, life insurance policies, etc.) to a qualified ND charitable nonprofit or a qualified ND endowment.
More information: www.tax.nd.gov
North Dakota Higher Education Challenge Match
The North Dakota Higher Education Challenge Fund is transforming campuses like Lake Region State College. It ignites a philanthropic spirit to support North Dakota colleges and universities, which is exactly what it does at Lake Region State College.
Numerous donors respond when matching dollars are available, which is crucial to smaller campuses like Lake Region State College. These gifts mean exponential growth for the college’s foundation. Since the challenge match started over 10 years ago, the Community College Foundation that supports Lake Region State College has seen its investment market value grow from $4.6 million to over $14 million. The number of scholarships and size of scholarships also has grown accordingly. Programs have flourished with program support, keeping them competitive in today’s ever-changing world.
The North Dakota Higher Education Challenge Grant Fund has benefited Lake Region State College in many ways. The college’s named endowment program that enhances scholarships and/or programs has grown substantially through this program. In addition, many donors were inspired to boost the size of endowments they had already established. In 2024, funding from these endowments and other sources provided scholarships that have almost doubled in the time of the matching program. We now award over $540,000 and the number was closer to $300,000 a decade ago. Endowments providing program support enabled our faculty to continuously improve student learning outcomes.
State Tax Credit for Planned or Deferred Gifts
Individuals may receive a state tax credit for a planned gift (e.g., charitable remainder trusts, charitable gift annuities, life insurance policies, etc.) to a qualified N.D. charitable nonprofit or a qualified N.D. endowment.
The tax credit is 40% of the charitable deduction allowed by the IRS up to a maximum credit of $10,000 per year per taxpayer or $20,000 per year per couple filing jointly. Effective for taxable years starting in 2007.
Definitions under
State Law
Qualified nonprofit organization– a North Dakota incorporated or established 501(c)(3) organization to which contributions qualify for federal charitable income tax deductions with an established business presence or location in North Dakota.
Qualified endowment– a permanent, irrevocable fund (comprising cash, securities, mutual funds, or other investment assets established for a specific charitable, religious, or educational purpose and invested for the production or growth of income, or both, which may either be added to principal or expended) held by a qualified nonprofit organization, a community foundation or a bank or trust company holding the fund on behalf of a qualified nonprofit organization.
See N.D. Century Code 57-38-01.21 and 57-35.3 for details.