Five years ago, residents in North Dakota gained something only a few other states allow – a tax credit for contributions to charitable endowments.
This benefit empowers Sanford Health supporters in North Dakota to achieve tax savings while building a legacy in health care.
Donors may receive the state tax credit for a contribution of $5,000 or more to an endowment. The tax credit is 40 percent 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.
One Fargo family, Jeff and Vickie Hoss, took advantage of this tax benefit when they established an endowment in 2012 to support the Employee Crisis Fund.
“We’ve had good things happen to us and we wanted to pay it forward,” Jeff said.
Jeff, a Sanford employee for 40 years, has watched the medical teams help thousands of patients, including members of his own family, over the last four decades. Jeff and Vickie's son needed extra medical attention at birth, and today, two of their grandchildren receive care for genetic disorders.
“All the work that Sanford is doing with genetics is a very worthy thing that gets me excited about contributing no matter what the cause is,” he said.
Jeff donated to the Foundation years before the Hoss’s accountant pointed out the benefits of establishing an endowment. After researching and looking at their finances, they realized the tax credit was the icing on the cake.
“It wasn’t the reason we decided how much we were going to put into this, but it has paid back generously,” he added. “I mean, this year it was delightful to have my taxes done.”
To learn more about the North Dakota tax credit and how you can take advantage of it, please click here.
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