A state tax credit law allows individuals and estates to reduce their Montana income taxes by making a qualified contribution to a Montana charitable endowment such as the Montana State University-Billings Foundation. The tax credit will remain in effect through December 31, 2001.
Corporations can access the tax credit through an outright gift to an endowment fund.
Individuals can receive the tax credit by making planned gifts. An arrangement combining a charitable contribution with an annuity purchase. 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. 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.