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QUALIFIED ENDOWMENT FUND TAX CREDIT
OFFICE OF STATE TAX COMMISSIONER
SFN 28708 (12-2022) Schedule ND-1QEC

2022
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 2019, 2020, or 2021, 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 2022 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) (b) (c) (d)
Name of qualified Address Border state Total amount
endowment fund (number, street, city, state, ZIP code) organization 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. 2022 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 2022. See instructions. Enter this amount on
Schedule ND-1TC, line 15a 8
9. Unused credit carryover to 2023 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 2022 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 10
11. a. Enter the amount from Schedule A (Form 1040 or 1040-SR), line 17 11a
b. Enter the federal standard deduction that you would have been allowed
on your 2022 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 4 16

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2022 Schedule ND-1QEC
SFN 28708 (12‑2022), Page 2

General instructions 4. Is located outside North Dakota; is less than $5,000. Only enter the
and information for Qualified Endowment
An individual is allowed an income
tax credit for making one or more 5. Is located within five miles Fund A on Schedule ND‑1QEC.
charitable contributions totaling at of a North Dakota city with a Example 4—A taxpayer makes a
least $5,000 to a qualified endowment population of 5,000 or more that charitable contribution of $500 at
fund. does not have a hospital. the beginning of each month to
If the entire credit cannot be used on No double benefit. A charitable Qualified Endowment Fund A for a total
the 2022 return, the unused portion contribution that is the basis for this contribution of $6,000 for the tax year.
may be carried over and used on credit may not be used as the basis for Because the total amount contributed
subsequent tax years’ returns for up to any other tax credit allowed for North to Qualified Endowment Fund A is at
three years. Dakota income tax purposes. least $5,000, the tax credit is allowed
on the entire $6,000. Enter the
Qualified endowment fund. A information for Qualified Endowment
qualified endowment fund means Specific line instructions Fund A on Schedule ND‑1QEC.
a permanent, irrevocable fund that
meets all of the following: Line 1 Line 6
1. It is held by a qualified nonprofit In columns a and b, enter the Enter the allowable portion of an
organization (defined below) or name and address of each qualified unused qualified endowment fund
by a bank or trust company on endowment fund to which you made credit, if any, based on contributions
behalf of a qualified nonprofit one or more charitable contributions made in the 2019 through 2021 tax
organization. totaling at least $5,000 during the years.
2022 tax year. See below for examples
2. It is comprised of cash, securities, of the application of the $5,000 Line 8
mutual funds, or other investment minimum contribution requirement. Enter on this line only that portion of
assets. In column c, fill in the circle if the the total available credit on line 7 that
3. It is established for a specific qualified endowment fund is held by a is used to reduce the tax on the 2022
religious, educational, or other border state organization - see “Border return. For example, if the available
charitable purpose. state organization” under “Qualified credit on line 7 is $1,000, but only
4. It may expend only the income nonprofit organization.” In column d, $400 is needed to reduce the tax to
generated by, or the increase in enter the total amount contributed to zero, enter $400 on line 8.
value of, the assets contributed to the qualified endowment fund.
it. Example 1—A taxpayer makes one or Line 9
Qualified nonprofit organization. A more charitable contributions totaling Enter the portion of an unused
qualified nonprofit organization means $4,000 to Qualified Endowment endowment fund tax credit, if any,
an organization that meets either of Fund A. Because the total amount based on qualified contributions made
the following sets of criteria: contributed is less than $5,000, in the 2020 through 2022 tax years
none of it qualifies for the credit. that is being carried over to the 2023
 North Dakota-based organization. Do not enter any information for tax year.
An organization is a qualified Qualified Endowment Fund A on
nonprofit organization if it: Schedule ND‑1QEC. Line 11b
1. Is incorporated in North Dakota, To determine the amount of the federal
Example 2—A taxpayer makes one or
or has an established location in standard deduction to enter on this
more charitable contributions totaling
North Dakota; line, see the instructions to the 2022
$4,000 to Qualified Endowment Form 1040 or 1040-SR, line 12.
2. Is tax-exempt under I.R.C. Fund A and one or more charitable
§ 501(c); and contributions totaling $1,000 to Line 13
3. Is a charitable donee Qualified Endowment Fund B. Because If the amount on line 2 includes a
organization as defined under the total amount contributed to each charitable contribution made to a
I.R.C. § 170. fund is less than $5,000, none of the qualified endowment fund by means of
contributions qualify for the credit. Do a trustee-to-donee transfer of monies
 Border state organization. An not enter any information for either of from an individual retirement account
organization is a qualified nonprofit the funds on Schedule ND‑1QEC. (IRA) under Internal Revenue Code
organization if it:
Example 3—A taxpayer makes one or section 408(d), enter that amount
1. Is tax-exempt under I.R.C. more charitable contributions totaling on this line. A charitable contribution
§ 501(c); $5,000 to Qualified Endowment made in this manner reduces federal
2. Is a charitable donee Fund A and one or more charitable taxable income because the transferred
organization as defined under contributions totaling $1,000 to monies, which would be subject to
I.R.C. § 170; Qualified Endowment Fund B. Only federal income tax had they not been
3. Supports or benefits a hospital, the $5,000 contributed to Qualified contributed, are excluded from federal
nursing home, or medical center, Endowment Fund A qualifies for the taxable income. To the extent these
or any combination of these; credit. The $1,000 contributed to monies are the basis for the qualified
Qualified Endowment Fund B does endowment fund tax credit, they must
not qualify for the credit because it be added back into North Dakota
taxable income.

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