The Montana Endowment Tax Credit provides an extraordinary opportunity to reduce your Montana taxes by directing funds to an endowment managed by the Billings Community Foundation. Currently, the tax credit provides one of the greatest philanthropic opportunities. You may receive a federal income tax deduction for your gift, a credit on your Montana state income taxes, and capital gains tax savings if appreciated assets are given. Funding for the future through endowment giving means your gift is held and invested in perpetuity and only investment income is used for accomplishing the purpose of your gift.
To take advantage of the 40% Montana Endowment Tax Credit, individuals are required to donate through a planned gift, which is as simple as establishing a Charitable Deferred Gift Annuity with the Billings Community Foundation to benefit the Non-profit Endowment Fund of your choice. This giving vehicle allows a tax credit of up to 40% against Montana income tax owed as well as the standard Federal deduction. The maximum credit is $10,000 per individual or $20,000 if you file jointly. Cash, securities, real estate, and other assets may be used to fund a charitable planned giving instrument to qualify for the tax credit. If the Billings Community Foundation does not already have an Endowment Account for your favorite charity, we can easily work with that non-profit to establish one!