Qualified Endowment Credit

Gifts with true costs of $.25 to $.50 on the dollar? That has been the case for our donors who utilize the Qualified Endowment Credit in their support of permanent endowments!

Since 1997, Montana law has provided a tax credit for certain types of gifts to nonprofit organizations, including Foundation for Community Health. This credit is offered to individual taxpayers, small businesses, corporations and estates.

Through 2019, FCH donors who make a planned gift to a permanent endowment at Foundation for Community Health may be eligible for a credit of 40 percent of the qualifying gift, to a maximum credit of $10,000. Eligible planned gifts include:

  • Charitable gift annuity
  • Charitable remainder or lead trust
  • Retained life interest in a home or farm
  • Paid up life insurance

Some businesses – “C” corporations, “S” corporations, partnerships and limited liability companies – may also qualify for the credit through outright or planned gifts to endowments. The credit passes through to partners/shareholders in proportion to their shares of ownership. Businesses are eligible for a credit of 20 percent of the qualifying outright gift and 40 percent of a planned gift to a maximum credit of $10,000 per partner/ shareholder.

The credit must be used in the year the gift was made, and can’t exceed one’s Montana tax liability. Any excess may be used as a tax deduction against Montana income. Gifts of appreciated property (securities, real estate) could provide additional capital gains tax savings.

Please contact your advisor to see if the Qualified Endowment Credit could be a way to leverage your charitable giving. Dorcie Dvarishkis of Foundation for Community Health is available to run confidential, no-obligation gift examples for your consideration. Call 406.926.2521 or email dorcied@fchwmt.org.

Bequests

IRA Charitable Rollover