What is the Montana Qualifed Endowment Credit?
Originally enacted in 1997 as the Montana Income Tax Credit for Endowed Philanthropy, (now called the Qualifed Endowment Credit) encourages charitable giving to qualified endowments by offering incentives to Montana taxpayers. It expires December 31, 2026.
HOW IT WORKS
The Montana Qualified Endowment Credit (formerly known as the Montana Endowment Tax Credit) allows donors to pay less in Montana state income taxes when they give a qualifying planned gift to a qualified Montana charitable endowment like the Whitefish Community Foundation’s permanent endowment fund or any of the Nonprofit Endowment Funds held by the Community Foundation.
An endowment is a fund held by a tax exempt organization where the principal of the fund is not wholly expendable. Only the interest and appreciation earned in an endowment fund can be used for current operations. Endowments are established to help Montanans meet long-term needs in our communities for education, social services, health care, economic development, the arts and more.
Individual Planned Gift:
Individuals who make a planned gift to a qualified Montana endowment fund will receive a Montana tax credit of 40% of their gift, with a maximum credit of $10,000 ($20,000 for joint filers).
Business/Corporation Outright Gift:
Businesses and corporations that make a direct gift to a qualified Montana endowment fund will receive a tax credit of 20% of their gift, with a maximum credit of $10,000. [Applies to corporations, small business corporations, partnership or limited liability company taxpayers.]
Montana Code Annotated
- Definition of a Planned Gift 15-30-2327(1) MCA
- Definition of a Qualified Endowment 15-30-2327(2) MCA
- Defining the Tax Credit for Planned Gifts 15-30-2328 MCA
- Defining the Tax Credit for Outright Gifts by Business Entities 15-31-161 and 15-31-162 MCA
- Charitable Gift Annuity Exemption Act 33-20-701 thru 705 MCA
- Uniform Prudent Management of Institutional Funds Act 72-30-101 thru 103 and 72-30-107 thru 213 MCA
Contact President/CEO Alan Davis at (406) 863-1781 for more information about how Whitefish Community Foundation can help you utilize the Montana Qualifed Endowment Credit to save on your state taxes while supporting the critical work of local nonprofit organizations.