North Dakota Qualified Endowment Fund Tax Credit

Qualified Endowment Fund Tax Credit
Schedule ND-1QEC - Qualified Endowment Fund Tax Credit (2023)
QUALIFIED ENDOWMENT FUND TAX CREDIT
OFFICE OF STATE TAX COMMISSIONER

Schedule ND-1QEC

SFN 28708 (12-2023)

2023

Attach to Form ND-1
Taxpayer's Name As Shown On Return



Your Social Security Number

If you are only carrying over an unused credit from 2020, 2021, or 2022, skip lines 1 through 5, and go to line 6.

Qualified endowment fund information
1. Enter the name, address, and the total amount contributed for each qualified endowment fund to which you contributed
at least $5,000 during the 2023 tax year.



Attach a letter or other documentation obtained from the qualified nonprofit organization holding the qualified
endowment fund that states it and the fund meet the requirements under N.D.C.C. § 57-38-01.21.
(a)
Name of qualified
endowment fund

(b)
Address
(number, street, city, state, ZIP code)

(c)
Border state
organization

(d)
Total amount
contributed

Calculation of credit
2. Total amount contributed. Add the amounts in column (d) of line 1

2

3. If married filing jointly, enter $50,000; otherwise, enter $25,000

3

4. Amount of contribution eligible for credit. Enter smaller of line 2 or line 3

4

5. 2023 credit. Multiply line 4 by 40% (.40)

5

6. Unused credit carryover, if any, from prior tax year(s)

6

7. Total available credit. Add lines 5 and 6

7

8. Amount of line 7 used to reduce tax in 2023. See instructions. Enter this amount on
Schedule ND-1TC, line 15a

8

9. Unused credit carryover to 2024 tax year

9

Adjustment to North Dakota taxable income


If there's an amount on line 5 of this schedule and you are also claiming a planned gift credit on Schedule ND-1PG, line 7, or
an endowment fund credit from a North Dakota Schedule K-1, do not complete lines 10 through 16 below; instead, see the
instructions to Form ND-1, line 4.

10. For federal tax purposes, did you complete and attach Schedule A to your 2023 Form 1040 or
1040-SR? If yes, enter the portion of the contribution (on line 2 of this Schedule ND-1QEC)
that you were allowed to deduct on Schedule A. If no, skip lines 10 through 12 and go to line 13
11. a. Enter the amount from Schedule A (Form 1040 or 1040-SR), line 17

10

11a

b. Enter the federal standard deduction that you would have been allowed
on your 2023 Form 1040 or 1040-SR, line 12, had you not itemized
deductions on Schedule A (Form 1040 or 1040-SR) - see instructions 11b
c. Subtract line 11b from line 11a. If result is less than zero, enter 0

11c

12. Enter smaller of line 4, line 10, or line 11c

12

13. If line 2 includes an amount transferred from an IRA under I.R.C. § 408(d)(8), enter that
amount on this line - see instructions. Otherwise, enter -0- on line 15 and go to line 16

13

14. Subtract line 12 from line 4

14

15. Enter smaller of line 13 or line 14

15

16. Adjustment amount. Add lines 12 and 15. Enter this amount on Form ND-1, line 2

16

	 023 Schedule ND-1QEC
2
SFN 28708 (12-2023), Page 2

General instructions
An individual is allowed an income
tax credit for making one or more
charitable contributions totaling at
least $5,000 to a qualified endowment
fund.
If the entire credit cannot be used on
the 2023 return, the unused portion
may be carried over and used on
subsequent tax years’ returns for up to
three years.
Qualified endowment fund. A
qualified endowment fund means
a permanent, irrevocable fund that
meets all of the following:
	 1.	It is held by a qualified nonprofit
organization (defined below) or
by a bank or trust company on
behalf of a qualified nonprofit
organization.
	 2.	It is comprised of cash, securities,
mutual funds, or other investment
assets.
	 3.	It is established for a specific
religious, educational, or other
charitable purpose.
	 4.	It may expend only the income
generated by, or the increase in
value of, the assets contributed to
it.
Qualified nonprofit organization. A
qualified nonprofit organization means
an organization that meets either of
the following sets of criteria:
	 	 North Dakota-based organization.
An organization is a qualified
nonprofit organization if it:
	

1.	Is incorporated in North Dakota,
or has an established location in
North Dakota;

	

2.	Is tax-exempt under I.R.C.
§ 501(c); and

	

3.	Is a charitable donee
organization as defined under
I.R.C. § 170.

	 	 Border state organization. An
organization is a qualified nonprofit
organization if it:
	

1.	Is tax-exempt under I.R.C.
§ 501(c);

	

2.	Is a charitable donee
organization as defined under
I.R.C. § 170;

	

3.	Supports or benefits a hospital,
nursing home, or medical center,
or any combination of these;

	

4.	Is located outside North Dakota;
and

	

5.	Is located within five miles
of a North Dakota city with a
population of 5,000 or more that
does not have a hospital.

is less than $5,000. Only enter the
information for Qualified Endowment
Fund A on Schedule ND-1QEC.

Specific line instructions

Example 4—A taxpayer makes a
charitable contribution of $500 at
the beginning of each month to
Qualified Endowment Fund A for a total
contribution of $6,000 for the tax year.
Because the total amount contributed
to Qualified Endowment Fund A is at
least $5,000, the tax credit is allowed
on the entire $6,000. Enter the
information for Qualified Endowment
Fund A on Schedule ND-1QEC.

Line 1

Line 6

No double benefit. A charitable
contribution that is the basis for this
credit may not be used as the basis for
any other tax credit allowed for North
Dakota income tax purposes.

In columns a and b, enter the
name and address of each qualified
endowment fund to which you made
one or more charitable contributions
totaling at least $5,000 during the
2023 tax year. See below for examples
of the application of the $5,000
minimum contribution requirement.
In column c, fill in the circle if the
qualified endowment fund is held by a
border state organization - see “Border
state organization” under “Qualified
nonprofit organization.” In column d,
enter the total amount contributed to
the qualified endowment fund.
Example 1—A taxpayer makes one or
more charitable contributions totaling
$4,000 to Qualified Endowment
Fund A. Because the total amount
contributed is less than $5,000,
none of it qualifies for the credit.
Do not enter any information for
Qualified Endowment Fund A on
Schedule ND‑1QEC.
Example 2—A taxpayer makes one or
more charitable contributions totaling
$4,000 to Qualified Endowment
Fund A and one or more charitable
contributions totaling $1,000 to
Qualified Endowment Fund B. Because
the total amount contributed to each
fund is less than $5,000, none of the
contributions qualify for the credit. Do
not enter any information for either of
the funds on Schedule ND-1QEC.
Example 3—A taxpayer makes one or
more charitable contributions totaling
$5,000 to Qualified Endowment
Fund A and one or more charitable
contributions totaling $1,000 to
Qualified Endowment Fund B. Only
the $5,000 contributed to Qualified
Endowment Fund A qualifies for the
credit. The $1,000 contributed to
Qualified Endowment Fund B does
not qualify for the credit because it

Enter the allowable portion of an
unused qualified endowment fund
credit, if any, based on contributions
made in the 2020 through 2022 tax
years.

Line 8

Enter on this line only that portion of
the total available credit on line 7 that
is used to reduce the tax on the 2023
return. For example, if the available
credit on line 7 is $1,000, but only
$400 is needed to reduce the tax to
zero, enter $400 on line 8.

Line 9

Enter the portion of an unused
endowment fund tax credit, if any,
based on qualified contributions made
in the 2021 through 2023 tax years
that is being carried over to the 2024
tax year.

Line 11b

To determine the amount of the federal
standard deduction to enter on this
line, see the instructions to the 2023
Form 1040 or 1040-SR, line 12.

Line 13

If the amount on line 2 includes a
charitable contribution made to a
qualified endowment fund by means of
a trustee-to-donee transfer of monies
from an individual retirement account
(IRA) under Internal Revenue Code
section 408(d), enter that amount
on this line. A charitable contribution
made in this manner reduces federal
taxable income because the transferred
monies, which would be subject to
federal income tax had they not been
contributed, are excluded from federal
taxable income. To the extent these
monies are the basis for the qualified
endowment fund tax credit, they must
be added back into North Dakota
taxable income.