NVH Foundation is building an endowment to ensure quality health care for future generations. Because the money is invested, not spent, a gift to the Endowment is a gift that keeps on giving.
Montana Tax Credit
The North Valley Hospital Foundation has established an endowment fund to provide for the future of North Valley Hospital and the community's healthcare needs. An endowment means your gift is held, through investments, in perpetuity. Only endowment income is used for future needs. Montana's Endowment Tax Credit allows credits against individual and corporation income tax for qualifying gifts to Montana permanent endowments.
Frequently asked questions about Montana’s Tax Credit and the Task Force
Individual Contributions - Montana law allows a direct credit against Montana individual income tax of up to 40% of the "remainder" value an individual's "planned gift" to a qualified charitable endowment, up to a maximum credit limit of $10,000. To qualify for the credit, contributions consisting of assets such as cash, securities, or real estate, must be in the form of a "planned gift," defined as a charitable remainder unitrust or annuity trust, charitable lead unitrust or annuity trust, charitable gift annuity, a paid-up life insurance policy, or other qualified charitable remainder contributions. The planned gift must normally provide for an income to the donor or other person for a period of five years or the lifetime of the donor, whichever is less.
Contributions by Corporations - The tax credit allowed against Montana corporation income tax is equal to 20% of the value of a direct gift to a qualified endowment, up to a maximum credit of $10,000 per year. No planned gift requirement applies.
Contributions by S Corporations, Partnerships, and Limited Liability Companies - The shareholders, partners, or members of these entities are entitled to a proportionate share of the credit, which is 20% of the value of the contribution by their business. Each business owner can claim up to $10,000 of credit per year under this provision.
For example, assume a single taxpayer gave a $50,000 gift in 2004; the credit percentage in 2004 was 40%. The amount of the tax credit is calculated my multiplying the gift amount by the credit percentage, but is limited to $10,000 per taxpayer. The taxpayer would calculate a credit amount of $20,000 ($50,000*40%), but could only claim a credit of $10,000. The taxpayer would claim a $10,000 credit on their tax forms, and the Department of Revenue would only record a gift amount of $25,000 ($10,000/ 40%). The other $25,000 given by the taxpayer would not be recorded. |