Sustainable funding to Save The Haah Daah Hey
In 2011, the North Dakota State Legislature enacted a generous tax credit program for individuals and businesses who contribute certain types of gifts to qualified North Dakota charities. This credit can be carried forward for up to three additional tax years if it cannot be fully used in the year of the gift.
The Save the Maah Daah Hey (STMDH) Endowment Fund, managed by the North Dakota Community Foundation (NDCF), qualifies for this tax credit. Below is an overview of the incentive and how your contribution can make a lasting impact.
The STMDH Endowment Fund: A Permanent Solution
The Save the Maah Daah Hey Endowment Fund is a permanent, protected fund. Only the earnings from the fund can be spent, providing a perpetual source of funding for trail maintenance and infrastructure needs.
Because grant funding is not available for general maintenance, the interest earned from the Endowment Fund will be used to cover these essential expenses, ensuring the trail remains safe, accessible, and well-maintained.
Our goal is to raise $2,000,000 for the Endowment Fund. Once fully funded, the earnings will ensure that the annual maintenance requirements of the MDH Trail can be met consistently, without relying on uncertain year-to-year fundraising.
Tax Credits For Endowment Gifts
For Businesses
Businesses (including C corporations, S corporations, estates, LLCs, trusts, and financial institutions) that pay North Dakota income tax may receive a 40% tax credit, up to $10,000 per year, for gifts of any amount to a qualified endowment fund.
For Individuals
Individuals may receive a 40% state tax credit for contributions of $5,000 or more (either as a lump sum or aggregated within a single year) to a qualified North Dakota endowment.
- Maximum credit: $10,000 per year per taxpayer, or $20,000 per year for couples filing jointly
- Credits may be carried forward for up to three additional tax years
- These credits are permanent and do not have a sunset period
Example: Planned or Deferred Gifts
Individuals may also qualify for the tax credit through planned or deferred gifts. For example:
A couple enters into a $200,000 charitable gift annuity agreement with the North Dakota Community Foundation, benefiting the Save the Maah Daah Hey Endowment Fund. The IRS allows a $100,000 charitable deduction from their federal taxable income.
This couple would qualify for a $20,000 North Dakota income tax credit, which can be applied over four years, subject to their tax liability.
How to give
To make a donation to the Save the Maah Daah Hey Trail Endowment Fund and qualify for the tax credit:
- By Mail:
North Dakota Community Foundation
PO Box 387
Bismarck, ND 58502-0387
(Include “Save the Maah Daah Hey Endowment Fund” in the memo line)
You will receive a receipt from NDCF once your donation is processed.
Questions?
For more information, please contact:
- Steve Burian at 701-740-4881
- Kevin Dvorak or Steve Lipp at 701-222-8349