FINANCIAL PLANNING
Understanding clients’ charitable giving goals can pay dividends to philanthropic legacies By Dan McLean
require a minimum contribution of $25,000, which can be contributed over Now is a great time to talk with your as many as five years. For many clients, clients about their philanthropic goals. the Montana Endowment Tax Credit Clients are more ready than ever to may not be important. Some clients may discuss their charitable giving options to consider charitable gift annuities and support the causes they care about. deferred gift annuities, gifts of personal Many clients consider their lawyer residences while retaining lifetime use, to be a trusted confidant and want them or direct distributions from their IRAs to to better understand their motivations their favorite charities. for charitable giving, have meaningMinimum contributions of $5,000 are ful, values-based conversations, and sufficient to create charitable gift annuitalk about how to involve children and ties which may qualify for the Montana grandchildren in charitable giving. Many Endowment Tax Credit. Charitable gift clients also express a desire to have annuities require annual payments to the philanthropic conversations early in the donors or other individuals. Deferred gift attorney-client relationship. Those conannuities permit delaying those payversations often involve getting to know ments. If a client doesn’t need the income clients’ charitable interests while helping payments from either type of gift annuthem navigate available tax benefits and ity, after five years they can forgive future various vehicles for giving, whether dur- payments and obtain another charitable ing their lifetime or after they die. tax deduction at that time. Many planning options can establish MCF specializes in preserving wealth or add to your clients’ philanthropic lega- in Montana. MCF’s staff can support cies. These include charitable gift annui- you to help your clients at every step of ties, charitable remainder trusts, charithe charitable giving process. As your table lead trusts, IRAs, life insurance, partner in philanthropy and expert in and bequests. Your clients’ philanthropic gift planning, MCF can help you create legacies ensure that intergenerational custom charitable plans and strategies transfer of wealth benefits Montana for your client to maximize tax benefits, communities. particularly the Montana Endowment Montana clients can take advantage Tax Credit. Making gifts to an existing of the Montana Endowment Tax Credit endowment at MCF empowers clients to on their Montana income tax returns if establish lasting family legacies. Qualified they donate to a qualified endowment. endowments also may be donor-advised Clients can create their own endowment permanent funds that clients create, simior contribute to an existing endowment lar to private foundations, but with fewer at the Montana Community Foundation complications. (MCF). Individuals may take a maxiPartnering with MCF as the charitable mum credit of $10,000; couples can claim arm of your professional team expands up to a $20,000 credit dollar for dollar the range of services you can offer to your against their Montana income tax. An clients while leaving you in control of endowment is a fund held perpetually those relationships. for charitable benefit. As the fund grows, MCF can assist you and your clients returns are used to support designated in creating a charitable legacy. MCF’s beneficiary organizations or fields of charitable gift and estate planning tools interest. Clients can fund endowments can provide you with the resources you with a variety of assets such as cash, real need to meet your clients’ needs. MCF’s property, or marketable securities. philanthropic officers can assist you, Permanent endowed funds at MCF using up-to-date software to calculate WWW.MONTANABAR.ORG
the value of planned gifts eligible for tax deductions and credits and estimated tax savings for your clients. Additionally, MCF can offer in-depth knowledge of local community issues as well as the latest trends in philanthropy. Your partnership with MCF ensures that your clients’ philanthropic legacies reflect their values and continue to make grants to the causes they care about for many years. With a customized and highly personalized approach to gift planning, MCF staff can help achieve a donor’s unique financial and charitable goals. With offices in Bigfork, Billings, Havre, Helena, and Missoula, MCF staff are available to meet in person or via technology, as preferred. Contact them to get started. ■ Jessica Stewart Kuntz (Helena)406-594-7862, jessica@mtcf.org ■ Heather Ohs (Billings)- 406671-9843, heather@mtcf.org ■ Jim Bennett (Havre)- 406-3013918, jim@mtcf.org Since 1988, the Montana Community Foundation has helped create permanent philanthropy across Montana. MCF manages more than $150 million in assets and administers more than 1,400 philanthropic funds and planned gifts. As a Board member of MCF, it is my pleasure to work with their staff to ensure the Last Best Place we love is cared for far into the future. Dan McLean retired in 2019 after serving as a partner in the Crowley Fleck law firm for 38 years with a primary focus on trust and estates, elder law, business and nonprofit organizations, and charitable giving. He began his legal career with a federal clerkship for the late Honorable Judge William J. Jameson. In 2019, he was awarded the William J. Jameson award, named after his former boss and mentor. He is a board member of the Montana Community Foundation. FEBRUARY/MARCH2022
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