Do you like paying taxes? I think not. There is a way that you can eliminate your state income tax and reduce your Federal income tax. It is called the Montana Tax Credit for Endowed Giving.

For as little as $2,000 [you can set any minimum you want] you can make an immediate charitable gift annuity or deferred gift annuity to Billings TrailNet’s endowment. This gift will provide an enduring source of support to permanently enhance the trail projects you love, as well as provide you with immediate tax savings and long-term income.

If you are a Montana donor making a planned or deferred gift to the Endowment, you may be eligible for the Montana Tax Credit for Endowed Giving—an incentive of 40% of the present value of a planned gift, up to $10,000 annually, to be taken as a direct credit against your state income tax liability.

Please note that this incentive provides a tax credit—not a deduction. The credit enables you to directly reduce or eliminate the amount of Montana income taxes that you pay and it is a charitable deduction on your Federal income tax.

Let me use an example from my own experience a few years ago. Of course, the exact numbers will be different for each individual. In 2000, I gave a gift to an organization of shares of stock that I had held for a long time. The saving was 72% of the gift in federal and state income taxes. Where else can you find a way to give away dollars that only cost you 28 cents?

Endowments will play an ever-increasing role in helping the Billings TrailNet to achieve its mission of supporting your trails in the Billings community. Endowment gifts truly are ones that keep on giving, and your planned gift can be a big part of ensuring that our vital mission can be carried forward in perpetuity.

Of course, you can’t do anything about 2016 taxes, but as you plan for this year’s taxes, please keep this in mind. For more information about making a planned gift to the Billings TrailNet Endowment please contact Kristi Drake, at (406) 281-1244.

Submitted by our former board member, Bernie Rose