Montana Endowment Tax Credit


The Endowment Tax Credit helps build charitable endowments. An endowment is a permanent fund held by or for a Montana charity whereby only the income and growth is used to carry out the charity’s mission. Endowments help Montanans meet ongoing community needs.

 The Endowment Tax Credit helps “lessen the burden” of Montana Government. By strengthening Montana endowments, charities are more capable of resolving social, educational, healthcare, and cultural problems.

 The Endowment Tax Credit can raise Montana revenue. A philanthropy tax credit is a one time credit offered primarily for a “planned gift.” A planned gift is a type of gift vehicle which often significantly increases the spendable (and thus taxable) income of the taxpayer each year for the remainder of his or her lifetime.

 The Endowment Tax Credit keeps otherwise spent federal capital gains tax dollars in Montana. A “planned gift” avoids federal capital gains tax which can cost Montana taxpayers up to 15% of the gain on the sale of appreciated assets.

 The Endowment Tax Credit keeps future federal estate tax dollars in Montana. A “planned gift” avoids future federal estate tax dollars which can cost Montana taxpayers approximately 35% of the amount used to fund the planned gift.

 The Endowment Tax Credit saves Montanans federal income tax dollars. The Montana Tax Credit of Endowed Philanthropy encourages Montanans to be generous to Montana charities. Such giving generates meaningful income tax savings on the federal level as well.