How Does the Montana Endowment Tax Credit Work?

By May 14, 2018Articles

Montana Endowment Tax Credit
Steve and Tricia, ages 60 and 59, make a $5,000 gift to their favorite endowment at the Catholic Foundation of Eastern Montana. They don’t necessarily want or need an income payment back in the future; what they DO want is to make a gift this year to build the future for their local parish AND to get the maximum tax benefits available to them. They decided to do a “Charitable Deferred Gift Annuity” with the Foundation and utilize the Montana Endowment Tax Credit.

Because they made their gift this way, they can now:

Take a $1,850 credit on their 2018 Montana tax return (that’s a dollar-for-dollar reduction on what they owe)
Take a $1,480 deduction on their 2018 Federal tax return (if they itemize)
Steve and Tricia were able to give $5,000 to help the Church for a net cost of just $1,670.

If they had given their $5,000 outright, their net cost would have been approximately $3,055. See how wonderfully they leveraged their giving to support the Church by using the Montana Endowment Tax Credit?

Please contact me!

Judy Held
Catholic Foundation of Eastern Montana
PO Box 1345
Great Falls, MT 59403
(406) 727-6683, ext. 120
[email protected]