Did You Know…
There are many ways you can help ensure individuals and families living with hunger in our region get the nutritious food needed to thrive. Please consider joining other legacy donors with a planned gift to the Great Plains Food Bank.
Appreciated Stock
A gift of appreciated stock, held more than one year, makes an excellent contribution. It’s deductible at its fair market value, and you avoid all capital gains taxes on the increase in value while receiving a charitable tax deduction.
Bequests
A bequest in your will – naming the Great Plains Food Bank as a beneficiary – is an easy way to support future hunger-relief efforts. A bequest can be a gift of cash, securities or another specified asset.
Life Insurance
Life Insurance is another simple way to make a substantial future gift. Naming the Great Plains Food Bank as the beneficiary to receive all or part of the proceeds of an existing life insurance policy entitles your beneficiaries to a charitable deduction from estate taxes when the policy is distributed. You can also take out a new policy with the Great Plains Food Bank listed as a beneficiary or co-beneficiary.
Retirement Assets
Retirement assets may be one of the best ways to transfer a charitable contribution because of some specific characteristics. In many cases, retirement assets can be the highest taxed asset of an estate, and a beneficiary may have to pay income tax on distributions received.
Retirement plans (401K, Roth IRA)
A gift through your retirement plan may enable you to avoid substantial income taxes and can be is to name the Great Plains Food Bank as the Primary Beneficiary. Consider using your IRS Required Minimum Distribution (RMDs) as a first-time gift towards ending hunger.
Mineral Rights
If you own real estate, another giving option is to donate all, or a portion of, your land or minerals. Depending on your property rights (surface rights and/or mineral rights), you can transfer your rights through a deed or other appropriate conveyance to the Great Plains Food Bank. Mineral rights donations can provide various tax benefits for you.
North Dakota State Tax Credit for Charitable Giving
One of the most unique opportunities for charitable giving in North Dakota is through the North Dakota State Tax Credit for Charitable Giving program. This program is unique to North Dakota.
To qualify, the contribution(s) must total a minimum of $5,000 for the tax year. The state tax credit you receive is 40% of the charitable gift allowed by the IRS up to a maximum of $10,000 per year, per taxpayer, or $20,000 per year, per couple filing jointly, which can be spread over two or three years. Qualifying businesses can also receive a state tax credit of 40% up to a total of $10,000.
Depending on your tax bracket and other deductions, the illustration presented may be different for you.
The table below is for illustrative purposes and assumes a 32% tax bracket – income range of $164,926 to $209,525.
| Gift Amount | $5,000 | $10,000 | $25,000 | $50,000 |
|---|---|---|---|---|
|
Estimated Federal Tax Savings |
($960) |
($1,920) |
($4,800) |
($9,600) |
|
ND State Income Tax Credit |
($2,000) |
($4,000) |
($10,000) |
($20,000) |
|
Net Cost of Gift |
$2,040 |
$4,080 |
$10,200 |
$20,400 |
Disclaimer: Please consider this information as a resource to help with planning your philanthropic goals. The information provided here is for illustrative and recommendation purposes only and should not be considered as legal advice on investment, accounting, or tax obligations. Please consult your wealth advisor or an attorney before making any final decisions.
For more information, please visit GreatPlainsFoodBank.org/PlannedGiving.
Thank you for considering how you can make the Great Plains Food Bank a lasting part of your legacy. With your support, we will not only end hunger today, but tomorrow and for good.