What is an endowment and what purpose does it serve? What are the benefits for donors contributing to PPiH’s endowment fund?

An endowment is a permanent fund that can make a lasting impact for generations to come. It provides dependable, perpetual income to PPiH by investing and preserving your principal gift and placing the earnings back into the community. 

If you are a business or an individual considering a sizeable donation, this type of gift may also have substantial tax benefits for you. 

If you are a North Dakota taxpayer, you may be able to claim a credit of 40% on a minimum donation of $5,000 to PPiH’s endowment through the North Dakota Charitable Income Tax Credit. This is in addition to the savings you receive on your federal tax return by itemizing your qualifying charitable donations. 

‍

Example: Mrs. Smith, a North Dakota resident, donates $20,000 in cash to an endowment fund. She receives an $8,000 tax credit (40%) on her North Dakota return. If she is in the 28% Federal tax bracket, her Federal tax savings are $3,360 (28% of $12,000). The "cost" of her $20,000 gift is offset by $11,360 in tax savings.

When you give to PPiH’s endowment fund, you will not only be able to claim the tax credit, you will be making a sustainable, forever gift. Your endowment gifts will support this work not only during your lifetime but for generations to come. 

‍

Consult your tax professional to understand how the Income Tax Credit can help you or your business.