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Your Guide to Year-End Giving

Plan Carefully for the Biggest Impact

Giving before year-end offers two fold benefits!
First, you would be supporting the works and dreams of your alma mater!
Second, your gift to us can give back to you!

The Benefits Possible With Year-End Giving

  • Save on this year's income tax
  • Save on capital gains tax
  • Save on future estate tax
  • Increase your support for charity

How it Works

If you itemize deductions, a gift is deductible in the year you make it. Generally, the effect of the deduction is that the higher your income tax bracket, the more you will save in taxes. Many states also allow an income tax deduction for charitable gifts, so the total tax savings are often higher than those generated by the federal income tax deduction alone. If you have had to take the standard deduction in past years, giving more may increase your deductions above the standard. This qualifies you for a greater tax benefit.


A person who pays taxes at a 28 percent marginal federal income tax rate makes a gift of $1,000 this year. It is as if that person has actually spent only $720. The $280 difference is the tax that the donor would have paid if no gift had been made.

IRA Rollover - a great way to support your alma mater, PHS!

What is it? The IRA Rollover� would allow IRA owners who are age 70 � or older to give funds to charity directly from their IRAs (up to $100,000 per year) and thus avoid taking their minimum distribution (or more) and paying tax on it. For some senior PHS alumni this could be a very favorable way of supporting your alma mater!

Montanans have an added incentive for charitable giving . . .


The Montana Endowment Tax Credit allows donors to pay less in Montana state income taxes when they give a qualifying planned gift to a Montana qualifying charitable endowment.

The incentive is 40% of the present value of a planned gift, up to a maximum $10,000 tax credit, per year, per individual or estate, and a credit of 20% of a direct gift made by a business (to a qualified endowment), up to a maximum of $10,000 per year.

Example: A donor, 65, purchased a $10,000 charitable gift annuity in 2005 with a certificate of deposit that matured. As income beneficiary, the donor will receive a 6.0%* annuity or $600 per year for life.

The donor names the permanent endowment of a favorite Montana non-profit 501 (c)(3) organization as the remainder beneficiary of the annuity. Therefore, the donor is eligible for the Montana Endowment Tax Credit. The federal charitable deduction for the gift is $3,553 and the qualifying amount for the Montana Endowment Tax Credit is $1,421 or 40% of the federal deduction. (Assumes an IRS discount rate of 5.0%).

Ways to Give . . .

At a Glance

Most Popular
BequestJust takes a simple designation in your will or trust and costs nothing during your lifetime. They are easy and revocable if your situation changes
Living TrustAvoids probate. Just name the charity as a beneficiary
Increas Your Cash Flow
Gift AnnuityYou can make a gift and receive guaranteed fixed payments for life. Payments may be made much higher than your return on low-earning securities or CD's.
Cheapest Source of Cash
Life InsuranceDonate policy, take a deduction, deduct future premium payments, if any, and make an extraordinary gift. Or just name the charity as the beneficiary. You'll also get the proceeds out of your taxable estate.
Most Popular with Advisors
Charitable Remainder TrustGreat tool for selling asets tax-free and receiving income for life; the remining assets go to charity. It provides steady cash flow and can be more benficial than keeping an asset or selling it outright.
Most Expensive for Kids
Retirement AssetsRetirement funds paid to your kids at your passing can get hit with income and estate taxes, but are tax-free to charity. Funds left to children may be hit with income and estate taxes of 70% or more.
Greatly Reduced Estate Tax
Charitable Lead TrustYou greatly reduce or avoid estate tax on trust assets passing to family - if some trust income goes to charity for a few years. Trust provide generous estate and gift tax deductions for wealth transferred to family at a more mature age.
In-Kind Rather than Cash
Real EstateGreat for making a gift and also transferring the burden of managing property. It won't reduce your disposable funds.
Life Estate DeedYou can deed your home or farm property to charity, save taxes with a current deduction, and still use the property for the rest of your life. It won't reduce your disposable funds.
Art & Other AssetsGift allows others to appreciate your special holdings. It won't reduce your disposable funds.
Most Possibilities
Family Business StockWhen the time comes to transfer or sell the business, there are tax and paractical reasons for including a charity in the plan. Tax advisors can be very creative.
Gifts of Raised Agricultural Commodities
Grain, etc.Farmers have a unique opportunity to make a "pre-AGI" charitable contribution of commodity inventory. Reduces taxable income, possibly self-employed social security taxes, possibly sidestep the normal 10% of income corporate charitable deduction limit.
Lasting Tributes
Endowments & MemorialsStrengthens your favorite charity and awards a worthy recipient in your name, if so desired. Establishes a permanent link with the past and encourages others to participate in the vision for the future.

Click here for On-line Giving to go to our on-line Pledge Form or our printable version.

Senior PHS alumni, this could be a very favorable way of supporting your alma mater!

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