The purpose of the North Dakota United Foundation is to promote educational excellence and quality public service in North Dakota. The Foundation’s goal is to aid educators, public servants, and students in achieving greater educational success.
The Foundation accomplishes this by offering various grants and scholarships to individual educators, public servants, and college students designed to enhance their skills.
It is with pride that the Foundation’s Board of Directors has established this special alliance with education and public service leaders who understand that their professional growth is the key to success.
The Foundation currently offers nine specifically designed and administered scholarships and grants to NDU members and students. In addition, the Foundation administers funds for the Minot Education Association’s Fund for the Improvement of Education and the Oakes Education Scholarship Fund. Local Associations or chapters with endowment or scholarship funds may want to contact the Foundation about assisting them with the administration of the funds. This includes compliance with various IRS rules and the preparation of the annual tax return.
As a 501(c)(3) tax organization, gifts to the Foundation are deductible for federal income tax purposes.
Individuals, and in some cases businesses, may create named endowments within the NDU Foundation and receive significant tax benefits. These endowments must have an initial contribution of $5,000. The donor, working with the Foundation, may determine how the proceeds of the fund may be used to enhance education and public service in North Dakota.
To qualify for the tax credit, the endowment fund must be held by a tax-exempt organization such as the NDU Foundation. The principal of the fund must be held intact and only the earnings used for current scholarships or grants.
An individual may receive a 40 percent tax credit for contributions of $5,000 or more. Unused credits may be carried forward for up to 3 years.
As an example, an individual in the 35% federal tax bracket making a $5,000 contribution to the Foundation could receive a federal tax deduction of $1,750 and a North Dakota State Income Tax Credit of $2,000. The net cost of the donation would be $2,000. (This example is for illustration only and because each individual’s tax situation is different, people should contact a qualified professional for assistance in determining the individual impact of a donation.)