THREE WAYS TO GET A 40% ND TAX CREDIT FOR YOUR PARISH
The recently enacted North Dakota Senate Bill 2160 increases the opportunities for North Dakota taxpayers to get a generous 40% state income tax credit for charitable contributions. With this credit alone, you can make a gift of $5,000.00 to Nativity Church of Fargo through one of our four parish endowment funds for a net cost of just $3,000.00 after the North Dakota tax credit … and when you consider federal tax deductions net the cost can be even less, depending on your tax bracket. (See examples in the chart below).
Our current endowments are:
- Maurice Muller Endowment Fund: Established in 2000, this fund is used for the education of persons involved in Liturgy or Social Justice.
- Nativity Parish Social Justice Ministry Fund: Established in 2004, this fund endows a Nativity staff position to promote Catholic Social Justice.
- Nativity Parish Faith Formation Scholarships: Established in 2006, this fund provides financial scholarships to Nativity parish children and adults in need making it possible for them to participate in Nativity Faith Formation, Nativity Youth Ministry, Nativity Sacramental Preparation Programs, and Youth, Youth Adults and Adult Retreat Experiences.
- Nativity Church of Fargo: Established in 2008, this is a general fund providing parish support for Nativity Church.
OUTRIGHT ENDOWMENT GIFT TAX CREDIT EXAMPLES.
Federal Tax Deduction ND State Income
Cash Gift At 28% Tax Bracket Tax Credit Net Cost
$5,000.00 $1,400.00 $2,000.00 $1,600.00
$25,000.00 $7,000.00 $10,000.00 $8,000.00
$50,000.00 $14,000.00 $20,000.00 $16,000.00
GIFT THE TAX CREDIT PLUS INCOME FOR LIFE WITH A CHARITABLE GIFT ANNUITY
See the example for a 76-year-old (one life) at 6% rate* below.
*Rate is determined by age and is locked for life.
$5,000.00 Gift
Result #1: The income tax Deduction is $2,176.00 plus North Dakota tax credit is $870.00 remaining.
$5,000.00 Principal
Result #2: At 6% annuity payments you receive are $300.00 with tax-free amounts of $239.40 (Effective payout Rate 9%)
$5,000.00 (Approximate) Reminder to Nativity Church of Fargo
Result #3: Payments you receive continue for life. Gift passes to Nativity Church of Fargo with NO probate fees or Estate taxes.
Note: These educational examples are not professional tax or legal advice; consult your tax adviser about your specific situation.
POINTS TO REMEMBER!
- This is a North Dakota tax CREDIT, not a deduction.
- The contribution can still be deducted from your federal income taxes.
If you could use this generous tax credit, please find out more now. Contact your tax advisor; or visit ndtaxcredit.com for information on benefits, qualifications and limitations.
QUALIFYING GIFTS
Individuals
- Make an outright gift to qualifying Nativity Church of Fargo endowment fund. Your gifts can be in the form of cash, securities or real estate.
- Make a planned gift to Nativity Church of Fargo such as a charitable gift annuity; certain forms of charitable trusts and paid-up life insurance may qualify.
Business Entities
- Make an outright gift to qualifying Nativity Church of Fargo endowment fund.
Remember your parish community of Nativity Church of Fargo in your planning and always consult your attorney, or other professional advisor, especially if you are considering a review of your estate plans as a result of recent tax law changes. Any questions please e-mail at duanek@nativitycatholicchurch.net or call 232-2414 x 134. (Duane J. Koble, Director of Administration).