What it does
Helps donors reduce their Montana state income tax liability
The Montana Endowment Tax Credit
The Montana Endowment Tax Credit (METC) can help you reduce your Montana state income tax liability while creating long-term support for the nonprofits and community causes you care about.
Through One Valley Community Foundation, qualifying gifts can be set aside, invested, and eventually transferred into a permanent endowment, creating steady support for your chosen nonprofit or for the broader Gallatin County community.
Wondering if the METC is right for you?
Use our calculator to see if the tax credit is the right fit for your giving goals.
Estimate Your Montana Endowment Tax Credit
Deferred charitable gift annuity with One Valley Community Foundation
Each taxpayer can claim their own credit, so a couple gives twice.
Fills in the gift that reaches the cap for your age, then calculates.
You can change this any time before your gift is completed.
This calculator provides an estimate based on a cash gift. We also accept gifts of appreciated stock held for more than one year. If you plan to give stock, we will prepare a personalized illustration using the details of your gift. The estimate uses the current IRS discount rate, and final figures may vary based on your actual gift date.
Your Estimated Benefits
Your gift
Deductible value of gift (Federal)
Montana income tax credit
How it works:
- Give: You give to One Valley Community Foundation. You claim a federal tax deduction and a Montana tax credit this year.
- Grow: Your gift is invested for at least five years, growing before it becomes lasting community support.
- Support: The full amount then moves into a permanent endowment, providing steady annual support for your chosen nonprofit or One Valley's community fund.
Maximum credit: $15,000 per taxpayer. Couples filing jointly may claim up to $30,000 when each spouse separately makes a qualifying gift.
We will email you a copy to keep, with a link to schedule a conversation whenever you are ready. No obligation.
These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on several factors, including the timing of your gift. Figures use the official IRS actuarial tables (Pub. 1457, Table 2010CM) and the published IRC Section 7520 rate. Questions? Contact Jennifer Owens, One Valley Community Foundation, jennifer@onevalley.org.
Want to talk it through?
The METC can feel complicated. Our job is to make it simple. Reach out at philanthropy@onevalley.org or schedule a call.
The tax credit at a glance
What it supports
Qualified permanent endowments that provide long-term charitable support.
Why donors use it
To pair thoughtful tax planning with lasting generosity.
How One Valley helps
One Valley helps donors and advisors understand the options, structure the gift, and steward the fund over time.
How the METC works
Give
You make a qualifying gift and receive a Montana state income tax credit based on 40% of the gift’s charitable value, up to $15,000 for individuals or $30,000 for couples.
Grow
Your gift is then set aside and invested for at least a five-year period, giving it time to grow before it becomes lasting support for the community or a nonprofit you choose.
Support
The full amount is then moved into a permanent endowment at One Valley, providing steady annual support for your chosen nonprofit or One Valley’s community endowment fund.
Why partner with One Valley?
The METC can be valuable, but it is not always easy to understand on your own. One Valley helps make the process clearer.
We work with donors, fundholders, nonprofits, and professional advisors to help structure qualifying gifts, establish and administer endowment funds, and steward charitable assets over time. Our team can help you explore whether this strategy aligns with your charitable goals, then coordinate the fund setup and long-term administration needed to carry your gift forward.
Stronger Nonprofits
$1.56 million
Directed to qualified endowments with One Valley’s support
Significant Tax Savings
$600,000+
Estimated Montana tax savings for donors
Example: Sarah’s Gift
Sarah expects to owe $10,000 in Montana state taxes this year. She is looking for a way to lower her taxes and support her community long term.
She makes a qualifying $25,000 gift to One Valley, designating her favorite local animal rescue as the ultimate beneficiary. The charitable value of her gift generates a Montana tax credit of nearly $10,000*, offsetting almost her entire state tax bill for the year.
Her $25,000 is then invested and grows untouched for five years.
After five years, the full amount, plus any investment growth, is transferred to a permanent endowment fund that provides annual support for animals, year after year.
Where can my gift go?
When you make a qualifying planned gift through One Valley, you choose where your gift will go after the required five-year period. Your gift becomes a permanent endowment, which means it is invested for the long term and provides steady annual support.
Frequently Asked Questions
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Yes. Through One Valley’s METC process, you choose the nonprofit endowment fund* your gift will support after the required five-year period.
Your planned gift can go to:
An existing nonprofit endowment fund
If the nonprofit already has an endowment at One Valley, your gift can be added to it.A new nonprofit endowment fund
If the nonprofit does not have an endowment yet, your gift may be used to establish one. One Valley’s minimum for this process is $25,000.One Valley’s Better Together Community Endowment
You can also choose to support flexible, long-term resources for changing needs across Gallatin County.*The benefiting organization must be a registered 501(c)(3) Montana nonprofit in good standings with the Secretary of State
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For individuals:
40% of the charitable value of a qualified planned gift, up to $15,000 per individual or $30,000 for couples filing jointly.Qualified business entities:
20% of the charitable value of a qualifying outright gift, up to $15,000.One Valley can create a personalized Gift Illustration to estimate the federal charitable deduction value and the potential Montana Endowment Tax Credit value before the donor proceeds. Reach out to us at philanthropy@onevalley.org to get started.
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For individuals, One Valley’s METC process generally uses a gift of cash or appreciated securities through a Deferred Charitable Gift Annuity.
The minimum gift amount for this structure is $25,000.
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No. A deduction lowers the amount of income that may be taxed. A credit is more direct. It can reduce the Montana state income tax you owe, nearly dollar for dollar, up to the amount you qualify for.
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Yes. Certain business entities may qualify for the Montana Endowment Tax Credit by making a direct gift to a permanent endowment at One Valley.
Eligible business entities may include S-Corps, partnerships, limited liability companies, and corporations. The credit for qualified business entities is generally 20% of the charitable value of the gift, up to $15,000.
Because business eligibility depends on Montana tax rules and your specific entity structure, please consult your accountant or tax advisor to confirm whether your business qualifies.
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A Deferred Charitable Gift Annuity is the planned giving structure One Valley uses to help individual donors qualify for the Montana Endowment Tax Credit.
Here is how it works:
You make a gift of cash or appreciated securities, such as stocks, to One Valley. The minimum gift amount is $25,000.
You choose the nonprofit endowment fund your gift will support.
You claim the Montana Endowment Tax Credit and a federal charitable deduction in the year the gift is made.
One Valley holds and invests the gift for at least five years, as required by Montana law.
After five years, the full value of the gift, including any investment growth, is added to the nonprofit endowment fund you selected.
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The Montana Endowment Tax Credit is available only for the year the gift is made. If you cannot use the full credit that year, the unused amount cannot be carried forward to a future year or applied to a past year.
The credit is also nonrefundable, which means it can reduce the Montana state income tax you owe, but it cannot reduce your tax bill below zero or create an additional refund.
To claim the credit, donors will need to file Montana’s Qualified Endowment Credit Form QEC with their taxes. Your tax advisor can help determine how the credit applies to your specific situation.
Because of this, it is important to talk with your tax advisor before making the gift so you can understand how much of the credit you may actually be able to use.
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Definition of a Planned Gift 15-30-2327(1) MCA
Definition of a Qualified Endowment 15-30-2327(1) MCA
Defining the Tax Credit for Planned Gifts 15-30-2328 MCA
Defining the Tax Credit for Outright Gifts by Business Entities 15-31-162 and 15-31-162 MCA
Charitable Gift Annuity Exemption Act 33-20-701 thru 705 MCA
Uniform Prudent Management of Institutional Funds Act 72-30-101 thru 103 and 72-30-107 thru 213 MCA
Wondering if the METC is right for you?
One Valley can help you understand how the Montana Endowment Tax Credit works, what your gift could support, and whether this planned giving strategy may fit your goals.
*Tax savings shown are estimates, and examples are illustrative with simplified numbers for clarity. Actual benefits depend on gift structure, eligible charitable contribution value, tax liability, and individual circumstances.
One Valley does not provide tax advice. Please consult your tax, legal, or financial advisor.