Expanded North Dakota Tax Credit for Business and Individual Contributions to Endowment Funds

There is a 40% Charitable Income Tax Credit available to North Dakota businesses and individuals who make gifts to, or create qualified endowment funds.  Endowed funds at the Fargo-Moorhead Area Foundation are qualified endowment funds.  Please review the brochure below for more information.  This tax credit is available for any of the fund types indicated below; the criteria is that it be a permanent fund, where only the income is utilized for charitable purpose.

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A Permanent Legacy to the Community

Permanence
Your gift to initiate an endowed fund will live on for generations to come. Your fund is permanent, an ongoing memorial to you, your family, or your passion. The Fargo-Moorhead Area Foundation meets National Standards, as determined by the Council on Foundations, for community foundations.

Simplicity
There is no charge to create a fund at the Foundation, and the procedure for establishing a fund is simple and straightforward. Administrative fees are reasonable, and services are personal and confidential.

Choice
Donors may determine the purpose for which gifts are to be made, or may entrust that decision to the Foundation's Board of Directors.

Flexibility
Donors can realize nearly any charitable intent by choosing from among the variety of fund types offered by the Foundation.

 

Types of Funds Offered by the Fargo-Moorhead Area Foundation:

Unrestricted
The donor allows the community foundation the discretion of determining the allocation of available grant dollars. The Fargo-Moorhead Area Foundation awards grants annually through its Community Grant Round.

Donor Advised Fund
The donor actively participates in the grantmaking process by recommending the annual allocation of the available grant dollars from the fund to charitable causes through Foundation staff, for final approval by the Foundation's Board of Directors. Donor Advised Funds currently make up 47% of the Fargo-Moorhead Area Foundation’s assets.

Field of Interest Fund
The donor instructs the community foundation to allocate the available grant dollars to a specific area, such as education, health, arts etc. The Foundation determines the specific organization. The Fargo-Moorhead Area Foundation has several funds of this type; the funds are allocated through the Community Grant Round.

Designated Fund
The donor instructs the community foundation to pay the available grant dollars to a specific, named charitable organization...in perpetuity.

Scholarship Fund
The donor develops a fund to support individuals who are pursuing training or education. The Fargo-Moorhead Area Foundation’s professional staff manages the scholarship process.

Agency Fund
A nonprofit organization initiates a fund to permanently support the operations of the organization. Annual contributions of the available funds are mailed to the organization.

Supporting Organization
This is a separate charitable organization, a 509(a)(3) that can attach itself to the Fargo-Moorhead Area Foundation and enjoy the public charity status of the Foundation.

Additionally, the Fargo-Moorhead Area Foundation offers the ability to initiate pass-through funds for specific projects and project funds. One current project fund supports a donor-driven reading program at an area school. A donor driven program is one that is initiated and financially supported by a donor. The Foundation staff provides program coordination and management.

 

The Fargo-Moorhead Area Foundation provides philanthropic services

The Foundation’s staff provides administration of each fund, while a Fund Manager, selected by the donor, provides investment management. The Foundation’s professional staff facilitates donor grantmaking and the scholarship process. Tax status is an important consideration for those who want the maximum tax benefit from their charitable contributions--the Fargo-Moorhead Area Foundation’s public charity status frees donors from the deduction limitations and IRS operating rules imposed on private foundations.

Fees
While there is no fee to initiate a fund with the Fargo-Moorhead Area Foundation, we do charge Administrative Fees for the services we provide. Additionally, there are fund manager fees, which are set by the individual institutions.

 

Administrative Fees for the Fargo-Moorhead Area Foundation
Donor Advised or Designated Fund	1% under $1 million	.25% over $1million
Unrestricted or Field of Interest Fund	1% under $1 million	.25% over $1million
Supporting Organization	1% under $1 million	.25% over $1million
Scholarship Fund	2%
Pass Through Fund	2%
Agency (Nonprofit) Funds	20% nonprofit discount
For more information about Fargo-Moorhead Area Foundation management services, please contact us.