Terms and Agreement for Your Endowment Gift
Matching Contribution Agreement
This document outlines the respective commitments of Special Olympics North Dakota (SOND) and donors to Special Olympics North Dakota Circle of Champions Endowment (SOND-CCE).
Quick Facts for SOND-CCE Co-Founders
Please refer to the complete matching contribution agreement for the comprehensive terms and policies. For a brief overview, expand the items below.
- SOND-CCE Co-Founder Campaign Overview
In honor of SOND founder Dr. Roger Kerns, the co-founder campaign facilitates donations to the recently established SOND endowment fund, known as the Special Olympics North Dakota Circle of Champions Endowment or SOND-CCE.
Within the campaign, SOND is committing $200,000 of the organization’s operating reserves to match the first 20 campaign donors, resulting in a $1,000,000 contribution to the endowment fund. Each of the 20 contributors will be named as a co-founder of the SOND-CCE.
This campaign will assist in building a secure future for SOND, providing necessary resources to fulfill the organization’s mission of enhancing the lives of people with intellectual disabilities.
- Matching Capital Contribution from SOND
SOND will match the donor’s capital contribution to the SOND Endowment Fund, as further detailed below:
Co-founder campaign donation requirement: $50,000
Donor share: $40,000 payable to SOND Endowment Fund, representing 80% of the matching capital contribution
SOND share: $10,000 payable to SOND Endowment Fund, representing 20% of the matching capital contribution
Donor and SOND commitments will be paid either in one lump-sum contribution, or scheduled on a four-year term, as determined by the donor.
- Contribution Term
Donors electing to a four-year term will remit $10,000 per year, with the first contribution due upon signing of the matching contribution agreement. The remaining annual contributions will be submitted on the anniversary date of the agreement.
SOND will contribute its pro-rata matching contribution, or $2,500 per year, upon receipt of the donor’s contribution to the SOND Endowment Fund.
- Fund Management and Oversight
SOND has an investment policy governing the SOND Endowment Fund, which is periodically reviewed by the organization’s finance committee and board of directors. All principal investment in the fund is permanently restricted with annual earnings available to support SOND operating activities.
The SOND Endowment Fund is professionally managed under an investment management agency agreement with Bell Bank Wealth Management, headquartered in Fargo, ND.
- Federal Deduction and North Dakota Income Tax Credit
All contributions to the SOND Endowment Fund qualify as charitable endowment contributions per IRS 501(c)(3) rules and restrictions.
In 2011, North Dakota passed a law allowing a generous tax credit for individuals and businesses who give specific types of gifts to North Dakota charities: 40 percent for gifts of $5,000 or more to a qualified North Dakota charitable endowment fund*. North Dakota resident donor contributions qualify for this state income tax credit.
If a donor is married and in the 28 percent tax bracket, the overall tax benefit may look like this:
| Total Contribution |
$40,000 |
| Federal Deduction |
$11,200 |
| State Tax Credit |
$16,000 |
| Net Cost of Gift |
$12,800 |
Note: The maximum state credit allowed is $10,000 for an individual or $20,000 for a married couple. The tax credit can be carried forward for three years.
For more details, read the information on North Dakota’s 40 percent tax credit from North Dakota Community Foundation.
*The claims here are not intended to provide specific legal or tax advice. Please consult your professional tax advisor for specific information for your situation. Qualified endowment is defined as an “irrevocable fund held by a North Dakota incorporated or established organization that is a qualified nonprofit organization; or a bank or trust company holding the fund on behalf of a qualified nonprofit organization.” The Uniform Management of Institutional Funds Act (NDCC 15-67) gives further guidance on the definition of endowment, stating that an endowment fund is not wholly expendable by the nonprofit on a current basis under the terms of the applicable gift instrument or fund agreement.