North Dakota Planned Gift Tax Credit

Planned Gift Tax Credit
Schedule ND-1PG - Planned Gift Tax Credit (2023)
PLANNED GIFT TAX CREDIT

OFFICE OF STATE TAX COMMISSIONER

Schedule ND-1PG

SFN 28705 (12-2023)

2023

Attach to Form ND-1

Name(s) 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 7, and go to line 8.
North Dakota qualified nonprofit organization
Name Of Qualified Nonprofit Organization

Border
State Org.

Name Of Administering Entity, If Applicable
Address

Address
City

State

ZIP Code

City

State

ZIP Code

Qualified planned gift
1. Planned gift was given to:

Qualified nonprofit organization
Qualified endowment fund. Enter name of fund



2. Identify the method used to make the planned gift. See the instructions for the eligibility criteria. (Fill in the applicable circle)
Charitable remainder unitrust

Charitable gift annuity

Deferred charitable gift annuity

Charitable remainder annuity trust

Charitable lead unitrust

Charitable life estate

Pooled income fund trust

Charitable lead annuity trust

Paid-up life insurance policy

3. Date on which qualified planned gift was completed



3

(MM/DD/YYYY)

Attach a letter from the qualified nonprofit organization indicating its I.R.C. § 501(c) status, the planned
gift method used, the date and amount of the planned gift, and, if applicable, the name of the qualified
endowment fund.

Calculation of credit
4. Charitable contribution portion of planned gifts completed in 2023 tax year

4

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

5

6. Amount of contribution eligible for credit. Enter smaller of line 4 or line 5

6

7. 2023 credit. Multiply line 6 by 40% (.40)

7

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

8

9. Total available credit. Add lines 7 and 8

9

10. Amount of line 9 used to reduce tax in 2023. See instructions. Enter this amount on
Schedule ND-1TC, line 5

10

11. Unused credit carryover to 2024

11

Adjustment to North Dakota taxable income
 If you claimed the standard deduction on your 2023 Form 1040 or 1040-SR, line 12, do not complete lines 12 through 15.


If you claimed itemized deductions on your 2023 Form 1040 or 1040-SR, line 12, complete lines 12 through 15. However, if
there's an amount on line 7 of this schedule and you are also claiming an endowment fund credit on Schedule ND-1QEC, line 5,
or from a North Dakota Schedule K-1, do not complete lines 12 through 15; instead, see the instructions for Form ND-1, line 4.

12. Did you deduct the contribution (on line 4 of this schedule) as a charitable contribution on Schedule A (Form 1040 or 1040-SR)?
No.

Stop here; no adjustment is required based on your 2023 contribution.

Yes. Enter the amount from Schedule A (Form 1040 or 1040-SR), line 17

12

13. 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

13

14. Subtract line 13 from line 12. If result is less than zero, enter -0-

14

15. Enter the smaller of line 6, line 14, or the portion of the amount on line 4 of this schedule allowed
as a deduction on your Schedule A (Form 1040 or 1040-SR). Enter this amount on Form ND-1, line 2

15

2023 Schedule ND-1PG
SFN 28705 (12-2023), Page 2

General instructions

An individual is allowed an income tax
credit for making a qualified planned
gift to a qualified nonprofit organization
or a qualified endowment fund. See
the instructions to line 2 for what is
a qualified planned gift.
The credit must be claimed first in the
tax year in which the planned gift is
made. The unused portion of a credit
for a planned gift made in the 2023 tax
year may be carried forward for up to
three tax years.
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.
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 above) 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.

Specific line instructions
North Dakota qualified nonprofit
organization
Enter the name and address of the
North Dakota qualified nonprofit
organization. This applies regardless
of whether the planned gift was made
to the qualified nonprofit organization
itself or to a qualified endowment
fund held by the qualified nonprofit
organization. If a bank, trust company,
or other entity holds and administers
the planned gift assets or qualified
endowment fund on behalf of the
qualified nonprofit organization, also
enter the name and address of that
entity.
If the qualified nonprofit organization
is a border state organization, fill in the
circle next to the organization’s name.
Line 2
Fill in the circle next to the type of
qualified planned gift on which the tax
credit is based. To qualify for the credit,
the qualified planned gift must consist
of an irrevocable charitable contribution
that was made using one of the
following gifting methods:
Charitable remainder unitrust—To
qualify, both of the following must
apply:
	 1.	The trust must be a trust defined
under I.R.C. § 664(d)(2).
	 2.	The trust agreement must contain
a provision stating that the trust
may not terminate and that the
beneficiary’s interest in the trust
may not be given to the qualified
nonprofit organization or qualified
endowment fund before the earlier
of (a) the date of death of the
beneficiary or (b) the date that
is five years after the date of the
contribution.
Charitable remainder annuity
trust—To qualify, both of the following
must be met:
	 1.	The trust must be a trust defined
under I.R.C. § 664(d)(1).

	 2.	The trust agreement must contain
a provision stating that the trust
may not terminate and that the
beneficiary’s interest in the trust
may not be given to the qualified
nonprofit organization or qualified
endowment fund before the earlier
of (a) the date of death of the
beneficiary or (b) the date that
is five years after the date of the
contribution.
Pooled income fund—To qualify, the
trust must be a trust defined under
I.R.C. § 642(c)(5).
Charitable gift annuity—To qualify,
both of the following must be met:
	 1.	The annuity must be a qualified
charitable gift annuity as defined
for federal income tax purposes.
	 2.	The annuity contract must
contain a provision that states
the annuitant’s interest in the
gift annuity may not be assigned
to the qualified nonprofit
organization or qualified
endowment fund before the earlier
of (a) the date of death of the
annuitant or (b) the date that is
five years after the date of the
contribution.
Charitable lead unitrust—To qualify,
the arrangement must satisfy the
requirements of I.R.C. § 170(f)(2)(B).
Charitable lead annuity trust— To
qualify, the arrangement must satisfy
the requirements of I.R.C.
§ 170(f)(2)(B).
Deferred charitable gift annuity—To
qualify, all of the following must be
met:
	 1.	The annuity must be a qualified
charitable gift annuity as defined
for federal income tax purposes.
	 2.	The annuity contract must
contain a provision that requires
the payment of the annuity to
begin within the life expectancy
of the annuitant or, if more than
one annuitant, the joint life
expectancies of the annuitants
using the actuarial tables
applicable to determining the
federal charitable income tax
deduction on the date of the
contribution.

2023 Schedule ND-1PG
SFN 28705 (12-2023), Page 3
	 3.	The annuity contract must
contain a provision that states
the annuitant’s interest in the gift
annuity may not be assigned to
the qualified nonprofit organization
or qualified endowment fund
before the earlier of (a) the date
of death of the annuitant or (b)
the date that is five years after the
date of the contribution.
Charitable life estate agreement—To
qualify, the agreement must satisfy the
requirements of I.R.C. § 170(f)(3)(B).

Paid-up life insurance policy—To
qualify, both of the following must be
met:
1.	 The policy must be a paid-up policy,
i.e., all premiums for the policy have
been paid, with no more premiums
due in the future.
2.	 The gift of the policy qualifies as a
charitable contribution under I.R.C.
§ 170.
Line 4
Enter the portion of all qualified planned
gifts completed in 2023 for which a
charitable contribution deduction is
allowed in 2023 for federal income tax
purposes.
Line 8
Enter the allowable portion of an
unused planned gift credit, if any, based
on gifts made in the 2020 through 2022
tax years that is being carried over to
the 2023 tax year.

Line 10
Enter on this line only that portion of
the available credit on line 9 that is
used to reduce the 2023 tax liability.
For example, if the available credit
on line 9 is $1,000, but only $400 is
needed to reduce the tax liability to
zero, enter $400 on line 10.
Line 11
Enter the portion of an unused planned
gift credit, if any, based on gifts made
in the 2021 through 2023 tax years
that is being carried over to the 2024
tax year.
Line 13
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.