For nearly three decades, Montanans have used a unique tool to leave a lasting legacy in the places they love and for the causes they care about. The Montana Endowment Tax Credit (METC) ensures local communities benefit from that generosity forever, while offering donors a credit on their state income tax bill for qualifying gifts. It’s a Montana-made solution that makes philanthropy accessible at every level. Established by the state legislature in 1997 to boost charitable giving and keep Montanans’ hard-earned money in the state, the credit was renewed repeatedly by lawmakers who praised it for “doing so much good for Montana communities” before being made permanent in 2023. “This tax credit is a valuable, modern-day tool that incentivizes people to give money away that will forever benefit Montana,” said Montana Community Foundation (MCF) CEO Mary K. Rutherford.  “We all know and hear the stories of the wealth of the era of the Copper Kings that left our great state. This is one way to encourage people to give in Montana to Montana for a fund that is held forever to benefit Montana communities and charities.” Who Qualifies and How It Works Anyone who pays Montana state income tax may qualify for the METC when they contribute to qualified endowments. Businesses can qualify with a 20% tax credit for direct gifts of cash or assets to a qualified endowment, up to $15,000 annually. For individuals or couples, it’s structured slightly differently than businesses. Individuals can claim up to a 40% tax credit for a planned gift’s value. Planned gifts are arranged during a donor’s lifetime as part of their estate plan and offer benefits such as tax credits or deductions. A few examples of the types of gifts for individuals that can qualify include: Annuities (you may take or defer life income) Charitable trusts Paid-up life insurance policies Life estate agreements Qualifying gifts start at $5,000, with the annual credit capped at $15,000 per individual or business, or $30,000 per couple, putting the credit within reach for donors at every income level. “Our median planned gift amount is $13,000,” Rutherford said in 2023. “So it’s not [just] the ultra-wealthy who are taking advantage of this credit. It’s our average Montanans putting some money into a planned gift that ultimately benefits the charities and the causes they care about.” How It Helps Montana In March, Montana Community Foundation distributed $6.4 million from endowments to more than 870 organizations doing work in communities across the state. “From Ekalaka to Eureka, Daniels County to Beaverhead County, endowments benefit many communities,” Rutherford said. The Seeley Lake Community Foundation (SLCF), an affiliate partner of MCF, has benefited from several planned gifts in the last two years, helping support the work of a robust organization that engages in philanthropy, provides leadership, and enhances the quality of life and economic vitality of Seeley Lake. SLCF has a legacy of service, from helping finance Seeley Lake Elementary’s Eagles Nest Playground to running the Seeley Lake Sunday Market. Gifts made under the tax credit also help power the Capital High School Alumni Class of 1981 Memorial Scholarship, established by alumni in honor of classmates from that year who have since passed away. That includes Stuart Long, better known as Father Stu, a Helena native who became a boxer and later a beloved priest who died at 50 from a rare and debilitating condition. “From Ekalaka to Eureka, Daniels County to Beaverhead County, endowments benefit many communities.” Montana Community Foundation (MCF) CEO Mary K. Rutherford Since 2022, the scholarship has helped a graduating senior at Capital High School in Helena who has demonstrated financial need and/or a combination of academic and extracurricular merit and is pursuing post-secondary education.  These stories reflect the lasting impact of the Montana Endowment Tax Credit, transforming individual acts of generosity into permanent community resources. By making planned giving more accessible, the credit empowers Montanans to invest in the future of their communities, ensuring that the places they care about continue to thrive for generations to come. “This tax credit is making a difference,” Rutherford said. “These funds are here forever.” Montana’s future is shaped by people who choose to act with intention — people like you. When you give through the Montana Endowment Tax Credit, you’re not just making a charitable gift; you’re investing in the long-term strength of the communities you love, while also receiving a meaningful tax benefit in return. It’s a rare opportunity where generosity and financial stewardship work together to create lasting impact. Take the next step today and see how your giving can go further for Montana: https://mtcf.org/giving/montana-endowment-tax-credit For more information, contact Jessica Stewart, Executive Vice President of Philanthropy, at [email protected], or (406) 443-8313. The post A Montana-made way to give back appeared first on Montana Free Press. ...read more read less