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Schedule North Dakota Office of State Tax Commissioner
ND-1QEC Qualified Endowment Fund 2018
Tax Credit 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 2015, 2016, or 2017, 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 2018 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. 2018 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 2018. See instructions. Enter this amount on
Schedule ND-1TC, line 15a 8
9. Unused credit carryover to 2019 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 4a.
10. On your federal income tax return, did you complete and attach Schedule A to your Form 1040? If yes,
enter the portion of the contribution (on line 2 of this schedule) 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), line 17 11a
b. Enter the federal standard deduction that you would have been allowed
on your 2018 Form 1040, line 8, had you not itemized deductions on
Schedule A (Form 1040) - 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), enter that amount
on this line - see instructions. Otherwise, skip lines 13 through 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 4a 16

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North Dakota Office of State Tax Commissioner
2018 Schedule ND-1QEC instructions

General instructions 5. Is located within five miles of a Example 4—A taxpayer makes a charitable
North Dakota city with a population contribution of $500 at the beginning of
of 5,000 or more that does not have a
An individual is allowed an income tax each month to Qualified Endowment Fund
hospital.
credit for making one or more charitable A for a total contribution of $6,000 for
contributions totaling at least $5,000 to a No double benefit. A charitable the tax year. Because the total amount
qualified endowment fund. contribution that is the basis for this credit contributed to Qualified Endowment Fund
may not be used as the basis for any other A is at least $5,000, the tax credit is allowed
If the entire credit cannot be used on the on the entire $6,000. Enter the information
tax credit allowed for North Dakota income
2018 return, the unused portion may be for Qualified Endowment Fund A on
tax purposes.
carried over and used on subsequent tax Schedule ND-1QEC.
years’ returns for up to three years.
Qualified endowment fund. A qualified Specific line instructions Line 6
endowment fund means a permanent, Enter the allowable portion of an unused
irrevocable fund that meets all of the Line 1 qualified endowment fund credit, if any,
following: In columns (a) and (b), enter the name and based on contributions made in the 2015
address of each qualified endowment fund through 2017 tax years.
1. It is held by a qualified nonprofit to which you made one or more charitable
organization (defined below) or by a contributions totaling at least $5,000 during Line 8
bank or trust company on behalf of a the 2018 tax year. See below for examples Enter on this line only that portion of the
qualified nonprofit organization. of the application of the $5,000 minimum total allowable credit on line 7 that is used
2. It is comprised of cash, securities, contribution requirement. In column (c), fill to reduce the tax on the 2018 return. For
mutual funds, or other investment in the circle if the qualified endowment fund example, if the allowable credit on line 7 is
assets. is held by a border state organization - see $1,000, but only $400 is needed to reduce
3. It is established for a specific religious, “Border state organization” under “Qualified the tax to zero, enter $400 on line 8.
educational, or other charitable purpose. nonprofit organization.” In column (d),
4. It may expend only the income enter the total amount contributed to the Line 9
generated by, or the increase in value of, qualified endowment fund. Enter the portion of an unused endowment
fund tax credit, if any, based on qualified
the assets contributed to it. Example 1—A taxpayer makes one or more
contributions made in the 2016 through
Qualified nonprofit organization. A charitable contributions totaling $4,000 to
2018 tax years that is being carried over to
qualified nonprofit organization means Qualified Endowment Fund A. Because
the 2019 tax year.
an organization that meets either of the the total amount contributed is less than
following sets of criteria: $5,000, none of it qualifies for the credit.
Line 11b
Do not enter any information for Qualified
To determine the amount of the federal
● North Dakota-based organization. Endowment Fund A on Schedule ND-1QEC.
An organization is a qualified nonprofit standard deduction to enter on this line, see
organization if it: Example 2—A taxpayer makes one or more the instructions to the 2018 Form 1040,
charitable contributions totaling $4,000 line 8.
1. Is incorporated in North Dakota, or to Qualified Endowment Fund A and one
has an established location in North or more charitable contributions totaling Line 13
Dakota; $1,000 to Qualified Endowment Fund B. If the amount on line 2 includes a charitable
2. Is tax-exempt under I.R.C. § 501(c); Because the total amount contributed to contribution made to a qualified endowment
and each fund is less than $5,000, none of the fund by means of a trustee-to-donee transfer
3. Is a charitable donee organization as contributions qualify for the credit. Do not of monies from an individual retirement
defined under I.R.C. § 170. enter any information for either of the funds account (IRA) under Internal Revenue
on Schedule ND-1QEC. Code section 408(d), enter that amount on
● Border state organization. An this line. A charitable contribution made in
organization is a qualified nonprofit Example 3—A taxpayer makes one or more
this manner reduces federal taxable income
organization if it: charitable contributions totaling $5,000 to
because the transferred monies, which
1. Is tax-exempt under I.R.C. § 501(c); Qualified Endowment Fund A and one or
would be subject to federal income tax had
2. Is a charitable donee organization as more charitable contributions totaling $1,000
they not been contributed, are excluded
defined under I.R.C. § 170; to Qualified Endowment Fund B. Only the
from federal taxable income. To the extent
$5,000 contributed to Qualified Endowment
these monies are the basis for the qualified
3. Supports or benefits a hospital, Fund A qualifies for the credit. The $1,000
endowment fund tax credit, they must be
nursing home, or medical center, or contributed to Qualified Endowment Fund B
added back into North Dakota taxable
any combination of these; does not qualify for the credit because it is
income.
4. Is located outside North Dakota; and less than $5,000. Only enter the information
for Qualified Endowment Fund A on
Schedule ND-1QEC.

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