Giving Together: Montanans take care of each other

Those of us lucky enough to call Montana home know that our state is like no other. We take care of each other. If your car breaks down, especially in the dead of winter, a stranger is going to pull over and offer to help. Simply put, Montanans have each other's backs.

I see this in action every day at Whitefish Community Foundation, where we bring together donors and nonprofits to help our neighbors and improve the quality of life for everyone in the Flathead. One of the most powerful tools we utilize is the Montana Endowment Tax Credit, an innovative tax incentive program that helps Montanans save on their state income taxes when they make a planned gift to a qualified Montana charitable endowment. Montanans taking care of Montanans…a win-win!

The Montana Qualified Endowment Credit offers Montana taxpayers the opportunity to save up to $15,000 on their state income taxes (up to a $30,000 tax credit for joint filers) and provides a sustainable funding source for local nonprofits. Last year alone, 20 donors saved $375,000 in Montana state income taxes by investing $1 million in nonprofit endowment funds held at Whitefish Community Foundation.

An endowment is a permanently restricted asset that provides a predictable source of income to help a nonprofit sustain its mission. As an endowment fund grows over time, the annual distribution also grows. Whitefish Community Foundation currently holds more than 40 endowment funds that benefit specific nonprofits, including Abbie Shelter, CASA for Kids and Humane Society of Northwest Montana. Since 2015, we have distributed $4.5 million from endowment funds to support local nonprofit projects and programs. This year alone, endowment distributions exceeded $600,000 to benefit Flathead Valley nonprofits.

Cindy Basnett, the executive director of CASA for Kids, had this to say about the impact of her organization’s endowment: 

“We are incredibly grateful for the generous donors who contribute to our endowment fund at Whitefish Community Foundation. Their support helps secure the future of CASA for Kids by meeting our immediate needs and enabling us to seize opportunities. Thanks to our endowment distribution this year, we will expand our office at the Gateway Community Center and transform the new space into a safe, youth-friendly environment where advocates can meet, talk and spend time with their CASA kids. This space will also serve as a hub for training new community members to become advocates, as well as for our regular group meetings with FOCUS youth, ages 12-18. Thanks to the expert financial management of Whitefish Community Foundation, our annual distribution is predictable and growing, allowing us to impact even more kids today while also planning for a bright future.”

Setting up a nonprofit endowment fund is as easy as setting up any other type of fund at Whitefish Community Foundation. Donors can give cash - or sometimes even better for tax purposes - donors can make a Qualified Charitable Distribution from their IRA or transfer appreciated assets such as stock. Many donors also decide to leave a bequest in support of a specific nonprofit endowment fund through their will or trust.

If you are a donor who would like to learn more about how the Montana Endowment Tax Credit can help you save on your state taxes, or if you are involved with a local nonprofit that is interested in establishing an endowment fund, Whitefish Community is here to help. We look forward to working with you to make a difference in the Flathead Valley!

Alan Davis is the President/CEO of Whitefish Community Foundation. He can be reached at [email protected] or (406) 863-1781.