Great Opportunity to Support & Save for Montana Residents
Montana taxpayers who are looking to establish a legacy with a nonprofit charitable organization, such as the Montana Tech Foundation, have an opportunity to save significant tax dollars with the Montana Endowment tax credit.
When making a planned gift to a Montana charitable permanent endowment, a credit can be taken against Montana state income tax in the amount of 40% of the present value of a planned gift. A 40% tax credit sounds great, but many potential donors don't initially realize the positive impact such a gift makes to the donor’s federal and state income taxes.
For example a Montana couple, who are in the highest federal tax bracket, could make a $50,000 planned gift to an organization, realize savings of $20,000 from the Montana endowment tax credit and receive a federal charitable tax deduction saving them $19,800 of federal income taxes. Essentially, the net cost of the $50,000 planned gift is $10,200. The maximum credit available each year is $10,000 per individual and $20,000 per couple. The amount of the tax credit will depend on the age of the donor, and in the case of an annuity, when the donor wishes to begin receiving annuity payments.
Some donor’s may be apprehensive about making a planned gift vs. an outright cash gift. Their concern may be the perception that a planned gift always require hiring an attorney to set up a planned gift. This is a myth since many nonprofit organizations, such as the Montana Tech Foundation, have experience working with donors to create planned gifts and can make the process relatively easy and quick.
An endowed gift is a permanent investment in the future of Montana Tech. Endowments are established with a gift given with the understanding that the funds will be invested by the Montana Tech Foundation in permanent trust. A percentage of your fund’s balance is paid out each year to benefit the purpose(s) you designate when the endowment is created.
An endowment can be established with a gift of $25,000 or more. This can be accomplished through a single gift, or built over time through a pledge. Endowed funds are professionally managed by CommonFund to an investment policy set by the Montana Tech Foundation Board of Directors.
Each year, four percent of your fund’s balance is paid for your designated purpose. We manage endowed funds to support Montana Tech for future generations with the long-term goal of growing the endowed funds to maintain their purchasing power.
What are the benefits of giving to endowed funds?
The greatest benefit of an endowed gift is knowing that your support of Montana Tech will go on indefinitely. In many respects, endowed funds are like an insurance policy, providing financial stability and a solid foundation for future growth. Because of their permanent nature, many donors use an endowment to recognize the memory of a loved one, or to build their own personal legacy on campus.
What can an endowed gift support?
The Montana Tech Foundation has endowed funds that benefit students through scholarship, as well as funds for faculty, athletic and equipment endowments. You outline what your endowment will support through a Memorandum of Understanding established when you make your gift.
We encourage you to establish a legacy at Montana Tech by creating or giving to an endowed fund.
If you’d like to have a conversation about ways you can support Montana Tech, through an endowed gift, please call Michael Barth at 406-496-4233. We’d love the opportunity to work with you to impact the future by putting more young people on the path to their own extraordinary futures.
Class of ‘62 Endowment Fund:
The Class of ’62 came together at their 40th reunion in 2002 and decided as a class to establish an endowed scholarship. Their initial goal was to raise $10,000. They’ve far exceeded that goal. In fact, by their 50th reunion in 2012, the Class of ’62 Endowed Scholarship was over $100,000 and continues to grow through contributions from the classmates and corporate matching gifts. At their recent reunion, the class was able to meet the recipient of their scholarship. The Class of ‘62 encourages other alumni to follow their example by staying connected with each other and the Montana Tech community, and by helping future generations of students reach their educational goals by establishing similar endowments.
“The Class of ’62 scholarship has enabled me to graduate debt free, something I could only dream to be able to do when I started as a freshman. I learned so much during my time at Montana Tech, and that has led me to be ready for a great job after graduation and I hope a start to a wonderful career. In addition to what I learned in the metallurgy program, receiving the Class of ’62 scholarship taught me an important lesson about giving back. I will give back to support future Tech students and encourage my classmates to do the same. It was an honor to be able to graduate in the presence of the Class of ’62.”
-Megan Black, ‘12 Metallurgical & Materials Engineering