Montana Income Tax Credit

Montana residents considering a planned gift may wish to take advantage of the revised "Montana Income Tax Credit for Endowed Philanthropy."  The following tax credits are available through 2019.

The credit available for individuals making “qualified” planned gifts to Montana endowments will be 40% of the charitable portion of the gift.

The direct credit available to corporations and “pass through” entities will be 20% of the value of gifts to Montana endowments.

The Montana Tax Credit for Endowed Philanthropy still provides an amazing incentive for charitable Montanans to promote the common good in their communities, while significantly reducing their tax liability.  Compare the cost for an individual in the 35% federal tax bracket making a $20,000 qualifying planned gift to the Montana State University-Billings Foundation with and without the tax credit.

Gift With Tax Credit*
Value of Charitable Gift $20,000
Less: MT Tax Credit ($8,000)
Fed Tax Savings (7,000)
Net Cost of Gift $5,000

*Federal and State tax savings are computed independently.
   
Gift Without Tax Credit
Value of Charitable Gift $20,000
Less: MT Tax Savings (2,200)
Fed Tax Savings (7,000)
Net Cost of Gift $10,800

Charitable Gift Annuity - An arrangement combining a charitable contribution with an annuity purchase. The donor transfers assets to  the MSU Billings Foundation and in return receives a fixed annual sum for a specified period of time (typically the remainder of the donor’s life). In addition to providing donors and beneficiaries with a predictable revenue stream, charitable gift annuities have the advantages of being easily administered and inexpensive to establish.

Deferred Gift Annuity - A charitable gift annuity in which payments are deferred to a time specified by the donor. This plan makes it possible for a donor to receive an immediate tax deduction and to defer annuity payments until retirement, for instance. The deferred annuity provides a higher annuity payout and a greater charitable deduction than the basic charitable gift annuity.

Charitable Remainder Trust – An irrevocable agreement through which a donor places assets in trust for the benefit of the MSU Billings Foundation. In exchange, the donor and/or beneficiaries receive a percentage of the trust assets each year, as re-valued annually (Charitable Remainder Unitrust), or a fixed income for life (Charitable Remainder Annuity Trust). Trust assets are transferred to the MSU Billings Foundation at the passing of the donor and/or beneficiaries. With proper planning, charitable trusts can be established to provide income tax and capital gains tax savings for donors with appreciated assets.

Charitable Lead Unitrusts - A plan in which assets are placed in trust and a percentage of the principal is paid to the MSU Billings  Foundation for a specified term. At the conclusion of the term, the assets revert back to the donor or the donor’s heirs. Through such an instrument, donors designate the term during which the Foundation derives benefit, with the remainder (at term’s end) going to, for example, children or grandchildren.

Life Estate Gift - A plan that enables a donor to transfer personal property (e.g., home, farm, ranch, vacation home, etc.) to the MSU Billings Foundation while retaining the right to use the property for a specified term, generally for the remainder of the donor’s life and/or the life of the donor’s spouse.

Life Insurance Agreement - A plan by which a donor transfers ownership of a life insurance policy to the MSU Billings Foundation.

Donor Designations for Endowed Funds
Many donors wish to name their funds and to designate the utilization of annual earnings in perpetuity. For example, a donor may wish to designate the proceeds for use by a particular department, such as Biology or English, or a donor may wish to establish a scholarship  with specific criteria using the annual proceeds to fund the award.

There are many wonderful opportunities for you to help MSU Billings reach its goal of access and excellence.  We can guide you in making a gift to the University that is personally gratifying to you and also blends with the objectives of MSU Billings.

For more information about planned giving contact
the Foundation Office at 406-657-2244 or toll free at 1-888-430-6782.

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