Planned Giving

Leave a legacy that ignites a lifelong love of science for years to come with a planned gift. By planning your legacy gift you can maximize tax savings for you and your heirs while supporting your favorite charitable organizations.

Montana Endowment Tax Credit

HOW IT WORKS

Formally known as the Montana Charitable Endowment Tax Credit, the Montana Endowment Tax Credit (METC) offers you a credit of 40% of a qualifying planned gift's federal charitable deduction, up to a maximum of $10,000, per year, per individual. It also allows a credit of 20% of a gift's federal charitable deduction for a direct gift by a qualified business up to a maximum of $10,000 per year.

Charitable IRA Rollovers

A TAX-WISE GIFT FROM YOUR INDIVIDUAL RETIREMENT ACCOUNT (IRA)

Individuals age 70½ or older can transfer up to $100,000 directly from their individual retirement account to support ExplorationWorks each year without paying federal income tax on the withdrawal.

HOW IT WORKS

  • You must be age 70½ or older at the time the gift is made.

  • Charitable IRA rollovers count toward satisfying your required minimum distribution (RMD) for the year of the gift.

  • You may give up to $100,000 per year. For couples, each spouse may give up to $100,000 from their respective IRAs.

  • Your IRA administrator must transfer the distribution directly to the charity. It is important not to withdraw funds before making the gift.

  • Charitable IRA rollovers avoid federal income tax.

Wills, Trusts, and Beneficiary Designations

Creating a gift through your will, revocable living trust or beneficiary designation is easy to do. The impact of your gift creates a powerful legacy that can transform the lives of future generations and support ExplorationWorks ignite a lifelong love of science to enrich Montana’s future.

GIFTS THROUGH YOUR WILL OR REVOCABLE LIVING TRUST

Just a few sentences in your will or revocable living trust is all that is needed to make a gift to support ExplorationWorks. Your gift can be for a specific dollar amount or for a percentage of your estate. Consult your financial advisor on proper wording when designating ExplorationWorks in your will.

BENEFICIARY DESIGNATION

You can designate ExplorationWorks as the beneficiary of financial accounts including:

  • IRAs and other Retirement Plans

  • Life Insurance Policies

  • Commercial Annuities

  • Bank Accounts

  • Investment Accounts

If you are considering or have already provided a gift through your will, revocable living trust or beneficiary designation please let us know. Our development staff can work with you and your advisors to draft language that will ensure your gift will be used as you intend.

Frequently Asked Questions

What is the maximum tax credit I can claim?
The credit is 40% of the planned gift's federal charitable deduction value, up to a maximum of $10,000 per individual or $20,000 per couple. For businesses, the credit is calculated at 20% of the value of the gift, up to a maximum of $10,000.

Who is eligible?
Any individual or business that pays income taxes to the State of Montana.

What is the difference between a tax credit and a tax deduction?
Tax deductions lower your taxable income. Tax credits provide a dollar-for-dollar reduction of your state income tax liability. This means that a $10,000 tax credit saves you $10,000 in taxes.

What is the benefit of naming a nonprofit as a beneficiary?
The SECURE Act, passed in December 2019, eliminated the ability for a non-spouse IRA beneficiary to stretch RMD’s over their lifetime. Under the new act they have 10 years to distribute the entire IRA, which poses a tax burden on many. Many people are now naming tax exempt non-profits as their IRA beneficiaries.

Which planned gifts qualify?

  • Charitable Gift Annuities

  • Deferred Charitable Gift Annuities

  • Charitable Remainder Unitrusts

  • Charitable Remainder Annuity Trusts

  • Pooled Income Fund Trusts*

  • Charitable Lead Trusts

  • Charitable Lead Annuity Trusts

  • Charitable Life Estate Agreements

  • Paid-up Life Insurance Policies

What else do I need to know?

  • The credit is only available in the year you make your planned gift. If you are unable to use the full credit in that year, there is no carry-forward or carry-back.

  • The credit is non-refundable, which means that it cannot reduce your income tax liability to less than zero.

  • You can take advantage of the Montana Endowment Tax Credit each year you make a qualified gift.

ExplorationWorks provides information about the benefits of planned gifts and does not provide any legal, financial or tax advice. We encourage you to talk with your advisors who are familiar with your specific situation to determine the benefits to you.