Gift Planning

Montana Endowment Tax Credit (METC)

Suzanne and Dave Peterson leveraged year-end endowment giving using the Montana Endowment Tax Credit. Read more . . .

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

Through 2013, CMC donors who make a planned gift to a permanent endowment at CMC Foundation 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 adviser to see if the METC could be a powerful tool in your gift planning.  Dorcie Dvarishkis of the CMC Foundation is available to run confidential, no-obligation gift examples for your consideration – 406-327-4149 or ddvarishkis@communitymed.org.

 

 

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