Planned Giving and the Montana Endowment Tax Credit
What is Planned Giving? Planned Giving, also known as legacy giving, is the process of making a charitable contribution that is arranged now but takes effect at a future date, often as part of an estate plan.
Why Planned Giving? These gifts allow individuals to make a significant charitable impact they might not have been able to make from their current income. It can also provide a variety of financial benefits to the donor and their family.
Common Types of Planned Gifts
Bequests: A gift made through a will or living trust.
Charitable Gift Annuities: The donor gives an asset to the organization in exchange for fixed, lifetime income payments.
Charitable Remainder Trusts: A trust that provides income to the donor for a set period, after which the remainder of the assets goes to the charity.
Gifts of Life Insurance: Naming the organization as a beneficiary of a life insurance policy.
Gifts from an IRA or Retirement Plan: Naming the organization as a beneficiary of a retirement account.
The Montana Endowment Tax Credit: A Unique Opportunity
What is it? The Montana Endowment Tax Credit (METC) is a powerful incentive designed to encourage charitable giving to qualified endowments in Montana. It provides a credit that directly reduces a person’s or business’s Montana state income tax liability.
How the METC benefits you: Gifts to the METC provide a direct tax credit to your state taxes. A tax deduction lowers your taxable income, while a tax credit provides a dollar-for-dollar reduction of the tax you owe. This makes the METC a particularly valuable tool.
How it Works for Individuals:
Planned Gifts
- Individuals who make a qualified planned gift to a qualified Montana endowment can receive a tax credit of 40% of the charitable portion of the gift.
- The maximum credit for a single individual is $15,000 per year, and for a couple filing jointly, it is $30,000 per year.
- These gifts are irrevocable contributions and must use a technique specified in Montana law, such as a charitable gift annuity or a charitable remainder trust.
How it Works for Businesses:
Direct Gifts
- Corporations, partnerships, LLCs, and small businesses can receive a tax credit of 20% of a direct gift (cash or other assets) to a qualified Montana endowment.
- The maximum credit for a business is $15,000 per year.
Our Qualified Endowments
Our endowments are a vital part of our organization’s future. When you give to a qualified endowment, your contribution helps us secure a permanent source of funding while offering you the benefits of the Montana Endowment Tax Credit. How to Qualify? To qualify for the METC, a gift must be made to a “qualified endowment. This is a permanent, irrevocable fund held by a Montana-incorporated 501(c)(3) tax-exempt organization or a trust company on its behalf. The fund’s principal is invested, and only the earnings are used for the organization’s purpose.
Education Foundation Endowments:
Angel Fund Endowment
The Angel Fund supports students by providing essentials like warm coats, shoes, glasses, and covering participation fees for school activities. This assistance allows students to focus on learning and enjoy their childhood without the burden of unmet basic needs.
Classroom Grants Endowment
Classroom Grants invest in innovative programs, essential equipment, and cutting-edge technology that teachers and students might not otherwise access.
Food Insecurity Endowment
The Food Insecurity Program tackles food insecurity through three main initiatives: Backpack Meals, Pantries, and the Summer Food Program. Backpack Meals ensure elementary students have nutritious food for weekends and holidays. Additionally, Pantries and the Summer Food Program provide shelf-stable food and essential necessities to students across all our schools year-round.
General Endowment
Supporting our general endowment provides a permanent source of funding, ensuring the long-term sustainability of our mission and vital programs
Ready to leave a legacy?
We would love to explore options with you today!
Call or email today for more information:
Shelley Pierce
406-281-5148
pierces@billingsschools.org
**We encourage you to consult with your financial advisor, attorney, or tax professional to determine the best planned giving strategy for your individual circumstances.**