Mandatory IRA distributions each year after the age of 70-1/2 trigger additional taxable income. If you already make sizeable contributions to favorite charities, such as your church or other non-profit cause, you might consider requesting your IRA holder to cut one check directly to that entity. By doing this, you will continue to support the cause you care about AND you will save on the amount of taxes you will owe. If the money doesn’t come into your hands, you are not taxed.

The state of North Dakota allows for a direct credit against taxes for individual and corporate gifts made to qualified endowments of North Dakota charities.

Individuals making outright or planned gifts of $5,000 or more receive a 40% state tax credit with a maximum credit per year of $10,000 for an individual or $20,000 per year for a couple. This $5,000 can be given outright as a lump sum or aggregate gift, or through a planned giving tool such as a charitable gift annuity, charitable trust, charitable life estate, or even some paid-up life insurance policies. Tax credits can be used in the year of the gift and may be carried forward for up to three years.

Businesses and corporations making outright gifts of $5,000 or more may also receive a tax credit of 40% with a maximum of $10,000 per year. In some cases, the tax credit “passes through” to offset the owners’ personal income tax liabilities.