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42.4.2701    DEFINITIONS

The following definitions apply to this subchapter:

(1) "Allowable contribution" for the purposes of the qualified endowment credit is a charitable gift made to a qualified endowment. The contribution from an individual to a qualified endowment must be by means of a planned gift as defined in 15-30-2327, MCA. A contribution from a corporation, small business corporation, estate, trust, partnership, or limited liability company may be made by means of a planned gift or may be made directly to a qualified endowment.

(2) "Donor" means an individual, corporation, estate, or trust that contributes to a qualified charitable endowment as required by 15-30-2327, 15-30-2328, 15-30-2329, 15-31-161, and 15-31-162, MCA.

(3) "Paid-up life insurance policies" are life insurance policies in which all the premiums have been paid prior to the policies being contributed to a qualified endowment. The donor must make the tax-exempt organization the owner and beneficiary of the policy. The paid-up life insurance policy does not have to be on the life of the donor.

(4) "Permanent irrevocable fund" means a fund comprised of one or more assets that are invested and appropriated pursuant to the Uniform Prudent Management of Institutional Funds Act provided for in Title 72, chapter 30, MCA. Investment assets may include cash, securities, mutual funds, or other investment assets. A "building fund" or other fund that is used to accumulate contributions that will be expended is not a permanent irrevocable fund. A fund from which contributions are expended directly for constructing, renovating, or purchasing operational assets, such as buildings or equipment, is not a permanent irrevocable fund.

(5) "Present value of the charitable gift portion of a planned gift" is the allowable amount of the charitable contribution as defined in 15-30-2131, and 15-30-2152, MCA, or for corporations as defined in 15-31-114, MCA, prior to any percentage limitations.

(6) "Qualified endowment" means a permanent irrevocable fund established for a specific charitable, religious, educational, or eleemosynary purpose by an organization qualified to hold it as provided in ARM 42.4.2703.

History: 15-30-2620, 15-31-501, MCA; IMP, 15-30-2131, 15-30-2152, 15-30-2327, 15-30-2328, 15-30-2329, 15-31-114, 15-31-161, 15-31-162, MCA; NEW, 2004 MAR p. 1965, Eff. 8/20/04; AMD, 2008 MAR p. 62, Eff. 1/18/08; AMD, 2010 MAR p. 1209, Eff. 5/14/10; AMD, 2014 MAR p. 2039, Eff. 9/5/14.

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