Tax Advantages

Federal Tax Advantages

The University of Montana Foundation is a 501(c)(3) organization. Irrevocable gifts made to the UM Foundation are tax deductible within the limits of the Internal Revenue Code. You may take the maximum tax deduction allowed by law at the time of the gift or carry the deduction forward over the next five years.
  • Capital Gains Tax Savings

    You can take a deduction for the fair market value of appreciated assets of up to 30% of your adjusted gross income (AGI) when gifts of long-term appreciated property (e.g., securities, real estate, personal property, etc.) are donated through outright gifts, charitable remainder trusts or charitable gift annuities.

Montana State Tax Advantages

  • College Contribution Credit

    Under current Montana law, the state allows a College Contribution Credit (not to exceed $500.00) of 10% of your gifts to the University of Montana, in addition to the allowable charitable deduction. 

  • Montana Endowment Tax Credit

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

    Individuals who establish a planned gift to a permanent endowment at the University of Montana Foundation may be eligible for a credit of 40 percent of the qualifying contribution, to a maximum of $10,000. Planned gifts that qualify include:

    • Charitable remainder or lead trust
    • Charitable gift annuity
    • Pooled income fund
    • Retained life interest in a home or far
    • Paid-up life insurance

Some businesses may also qualify for the credit through outright or planned gifts to endowments. Businesses that are eligible include "C" corporations, "S" corporations, partnerships and limited liability companies. The credit is passed through to partners or shareholders according to their proportionate shares of ownership. Businesses are eligible for a credit of 20 percent of the qualifying outright gift and 40 percent of planned gifts to a maximum of $10,000 per partner or shareholder.

For both individuals and businesses, the credit must be used in the year of the gift. Gifts of appreciated property such as stocks or real estate may provide even greater savings by avoiding capital gains tax.

Contact

For more information on federal or state tax advantages, please contact  Alison Schultz, Associate Director of Gift Planning.

Alison Schultz