Tax season often brings a mix of paperwork, questions, and reflection. It’s also a time to think about how we support the people and places that matter most. As new tax laws take effect, charitable giving remains a powerful way to strengthen our communities, now with a few updated incentives to consider.

At its core, charitable giving isn’t about tax benefits. It’s about investing in the well-being of our communities and ensuring local nonprofits can continue their critical work. The Montana Community Foundation exists to help donors at every level turn those intentions into lasting impact.

For about 90% of taxpayers who take the standard deduction, there’s good news. Starting this year, individuals can deduct up to $1,000 in charitable gifts, and married couples can deduct up to $2,000, even without itemizing. This offers many Montanans a new chance to give confidently, knowing their generosity is recognized while making a real difference close to home.

If you are seeking a way to make a significant impact, consider the Montana Endowment Tax Credit (METC). This tax credit has been around for nearly 30 years and is a powerful tool to give back to Montana while reducing your taxes. The METC provides a 40% tax credit on the federal charitable deduction for a qualifying planned gift (up to $15,000 annually per individual or $30,000 for couples). 

Businesses making direct gifts to qualified endowments can receive a 20% tax credit, up to $15,000 annually. Unlike a tax deduction, which reduces taxable income, a tax credit allows donors to give more to Montana's nonprofit organizations and save more on their Montana income taxes.

Whether you give a little or a lot, thoughtful planning can help your dollars go further. For many standard deduction filers, these new provisions offer a chance to be more intentional and budget for annual gifts to your chosen nonprofits. When many people do this together, the collective impact can be extraordinary.

Local nonprofits are being asked to do more with less: expand affordable housing, protect Montana’s land and water, support children and families, and ensure everyone has the basic necessities. Consistent, planned giving helps organizations stay strong and responsive, even in uncertain times.

For higher-income donors navigating new limitations, tools like donor-advised funds can be especially helpful. By contributing to a donor-advised fund through the Montana Community Foundation, donors may receive a tax benefit in the year of the contribution while recommending grants to nonprofits over time. Contributions can include cash or non-cash assets, such as appreciated stock or property, which may offer additional tax advantages by avoiding capital gains taxes and allowing more of the gift to support charitable work.

MCF works closely with donors and their advisors to align giving strategies with personal values, ensuring generosity today creates lasting benefits for tomorrow.

As you file your 2025 taxes and consider how these changes affect your finances, we hope you think about your community. What do you love about where you live? What would you like to see grow stronger? Charitable giving is one of the most meaningful ways to shape the future we want for Montana.

This isn’t just about people with wealth. It’s about everyday people—local business owners, teachers, farmers, retirees, and community leaders—coming together to care for one another. Even in challenging times, generosity remains one of our greatest strengths.

The Montana Community Foundation is here to help you navigate your options, plan with purpose, and make an impact that reflects what matters most to you. Together, we can ensure Montana’s communities continue to thrive for generations to come.

Mary Rutherford, President & CEO of the Montana Community Foundation