The Montana Qualified (Endowment) Tax Credit was established by the Montana Legislature in 1997 to encourage individuals, businesses and organizations to make lasting investments in their communities by giving to qualified endowments such as the Billings Community Foundation Legacy Fund. Montana is one of only four states to provide an endowment tax credit program.

The law provides for:

    • Planned Gifts — Credit against state income-tax liability in the amount of 40 percent of the present value of any planned gift to a permanent endowment of a Montana charity, up to a maximum amount of $10,000 per year per taxpayer ($20,000 for joint filers). Individuals and joint-filing taxpayers are required to convey their gifts through a planned gift. Gift annuities, charitable trusts and estate gifts all fall under the definition of a planned gift. Charitable gift annuities, in most cases easily established, are the most often-used planned gift for this purpose.
  • Outright Gifts — Credit against state income-tax liability in the amount of 20 percent of the present value of any outright gift by a business entity to a permanent endowment of a Montana charity, up to a maximum of $10,000 per year per taxpayer. Only corporations, small business corporations, partnership or limited liability company taxpayers may give gifts of cash.


Simply put, the credit allows donors to pay less in Montana state income tax when they make an irrevocable planned gift to qualified Montana charitable endowment such as “The Legacy Fund.”


Planned gifts are a way of giving that allows donors to maintain access to income during their lifetime, provide estate and tax-planning tools and build permanent wealth for the Community Foundation to continue its mission. A planned gift held at the Community Foundation can provide a legacy to a particular organization or interest area held dear by a donor.


By providing a permanent legacy gift to the community and causes you and your family care about, you can create significant tax savings for yourself or your business.

Planned Giving

Allow the Billings Community Foundation to assist in your Tax and Estate Planning through a variety of charitable giving tools, including: Life Income Gifts, Outright and Deferred Charitable Gift Annuities, Charitable Remainder Trusts, and Bequests by will.

Billings Community Foundation Legacy Endowment Fund

Support the capacity and continued growth of your local Billings Community Foundation by contributing to this Endowment Fund and utilizing the Montana Endowment Tax Credit for Endowed Giving. Annual income from gifts to this fund help ensure the important work of the Billings Community Foundation in perpetuity throughout the region.

Donor/Family Designated Endowments

A Donor Designated Endowment Fund is similar to a Donor Advised Fund, but allows the donor to provide perpetual support to one or more of their favorite causes while also taking advantage of the Montana Endowment Tax Credit. Gifts are made to establish or contribute to a Montana based charitable organization, and a percentage of the income earned is dispersed annually.  A great alternative to a family or corporate foundation, advisors may identify specific organizations or causes to support and work with the Billings Community Foundation staff to recommend distributions recognized at the Annual Grant Awards Ceremony.

Agency Endowment Fund

Establishing an Agency Endowment Fund with the Billings Community Foundation is a simple and efficient way to build an ongoing source of income for your charitable organization can depend on. We manage the funds so nonprofit staff and volunteers can focus on the programs and activities that further your mission.