Foundation Information
Looking ahead to the next 50 years of caring for children, the Home On The Range Board of Directors established a foundation in June of 1999. The foundation is to receive, invest and dispense proceeds to fund the services benefiting our boys and girls.
Since such a large portion of our annual budget comes from private donations, it is crucial to plan for the ranch’s needs well in advance. The Home On The Range Foundation was incorporated to financially support the basic mission of Home On The Range.
An endowment fund is a permanent fund, where the principal is never used. Only the interest generated from the principal is spent. It can be funded through cash donations, memorials and honorariums, or planned giving gifts. Planned gifts work well for people who have the desire to give, but may not currently have the financial capability to do so. The most common planned gift is a bequest in a will. A person can leave a specific dollar amount, property or stock, or a percentage of his/her assets to the Home On The Range Foundation. If you already have an existing will and want to make a bequest to Home On The Range, your attorney can add a codicil that explains your specific request. The original will is still valid and does not have to be rewritten.
Individuals may give a substantial gift through a life insurance policy. An existing policy can be changed to list the beneficiary as the Home On The Range Foundation. A new policy can be written which names the Home On The Range Foundation as the owner, beneficiary and payer of premiums. There are tax advantages to using life insurance, such as deducting the premiums as a taxable donation.
Another tax advantageous way to donate to an endowment is with the charitable gift annuity. By establishing a gift annuity, you are provided a fixed income for you and/or your spouse during your lifetime, you receive income tax savings and assure future support of the organization. A donor makes a contribution to the nonprofit, and based on the donor(s) age and the amount of the contribution, the organization pays the donor a specified amount annually, quarterly or even monthly. This payment is made to the donor(s) until their death, at which time, the remaining amount of the annuity goes back to Home On The Range Foundation.
Endowment funds have been set up to provide for operational funding and specific needs of the ranch: Home On The Range General Endowment Fund.
A special endowment — The Father Fahnlander Endowment Fund– has been created to honor Father William J. Fahnlander and to commemorate his years of service and leadership as superintendent of Home On The Range. This special endowment will provide for the spiritual and educational needs of the residents, as this was Father Fahnlander’s specific request.
Ways of Planning A Gift
Gifts of Appreciated Real Estate
Almost any type of real property, a personal residence, a farm, a vacation home, a commercial building, or an undeveloped parcel of land can constitute a gift. Gifts of property can be given in a variety of ways. If the property is long term, you will generally avoid any tax on the capital gain, reduce your taxable estate by the value of your gift, and receive a charitable contribution deduction for 100 % of the fair market value of the property.
Gifts of Residence or Farm with Retained Right of Use
Because of special provisions in the law, you can give Home On The Range your personal residence, farm, or second home, yet continue to live there the rest of your life. You will receive an immediate income tax deduction for the contribution.
Gifts of Depreciated Farm Machinery
With the gift of depreciated farm machinery, farmers can avoid paying income tax on ordinary income from the restored appreciation, and if the machinery has a remaining cost basis, the donor can generally receive a charitable deduction for the amount.
Gifts of Grain/Livestock
For a gift of grain and/or livestock, you could make a significant investment in the future of Home On The Range and disadvantaged children in North Dakota, as well as provide an opportunity for a major memorial for a loved one and/or friend.
Living Memorials
The greatest gift a person can give is one that offers meaning, hope, courage, and harmony to others. Your contributions in honor or memory of loved ones and friends enable Home On The Range to provide a caring, safe and loving environment where troubled youth can change their lives by learning and experiencing increased self-worth.
Home On The Range Foundation is a public, not for profit 501 (c) (3) recognized organization. For more information contact personnel at Home On The Range Foundation, 16351 I-94 , Sentinel Butte, North Dakota 58654 or call (701) 872-3745. There is no obligation for requesting information.
ND tax credit for gifts to HOTR Foundation
North Dakota residents have a wonderful opportunity to contribute to the HOTR Foundation and receive a N.D. tax credit for certain planned gifts and also for any gifts to the foundation that total $5,000 or more in a calendar year (gifts must be received by December 31). The tax credit (ND Century Code 57-38-01.21) allows individuals, businesses, trusts and estates to take advantage of a 40 percent state tax credit for contributions of over $5,000 to qualified charitable endowment funds. The maximum gift to receive the N.D. tax credit is $25,000 per person. Even better, the unused portion of that state tax credit can be carried forward for three years. Depending on your tax bracket, your donation to the HOTR Foundation can go farther and cost you less! Take a look at the following example:
A North Dakota taxpayer in the 25 percent tax bracket makes a donation of $25,000. After taking advantage of an estimated federal tax savings of $6,250 and a N.D. income
tax credit of $10,000, the cost of that $25,000 donation is just $8,750!
For more information on the gifting program for the HOTR Foundation, please contact Development Director Jolene Obrigewitch at (701) 872-3745 or Matt Stevenson, Planned Giving Specialist at the Catholic Foundation for the People of the Diocese of Bismarck at (701) 204-7206.
Mail your tax-deductible contribution to:
Please designate which endowment to apply your gift:
Home On The Range Foundation General Endowment Fund – to supplement the programs and services of Home On The Range
Father Fahnlander Endowment Fund – to supplement the spiritual and educational programs