Experts at City Club urge capturing transfer of wealth to bolster Montana nonprofits

MISSOULA — Leaders from Montana's community foundations told a City Club audience on May 13 that an ongoing "transfer of wealth" presents a major funding opportunity for nonprofits across the state.

"An estimated $37,000,000,000 is transferring from one generation to the next by 2030," said Ally Fontenot, gifts and estate planning director at the Montana Community Foundation, who said capturing about 5% of that could generate roughly $1.85 billion in endowed assets that would support nonprofits in perpetuity. "If we endowed that, that would allow $83,000,000 every year to be invested back into our state for the nonprofits, the causes that we all care about," she said.

The Montana Community Foundation, Fontenot said, advises donors on estate planning and the state's endowment tax credit and holds endowments for more than 500 nonprofits statewide. She told the audience the foundation's annual endowment distribution for 2025 was about $6,400,000 and cited examples of donor-funded programs, including a fund that awarded 88 grants totaling $87,680 to Native families conducting missing-person searches.

Marcy Allen, executive director of the Missoula Community Foundation, told the same forum that local strategies matter. "We just wrapped up Missoula Gives, and we raised $1,400,000 for the 214 nonprofits in the community," Allen said, describing the foundation's role in marshalling resources, building nonprofit capacity and launching a nonprofit impact initiative that will provide grants, education and networking opportunities.

Panelists discussed tools donors use to give — donor-advised funds, endowments, memorial gifts and estate gifts — and described minimums connected to Montana's endowment tax credit. Panelists said the Montana Community Foundation and Missoula Community Foundation both accept gifts that qualify for the state endowment tax credit and cited a common baseline: the foundations listed a $2,500 minimum gift that qualifies for the credit in their practices and presentations.

Audience members questioned speakers on whether foundations should raise endowment payout rates and on new approaches to investing. "Our payout is 4.5%," Fontenot said, explaining the organizations set a payout rate intended to preserve principal in perpetuity and comply with the Uniform Prudent Management of Institutional Funds Act. She added the Montana Community Foundation has used impact investing in recent years, making loans to community organizations including the Native American CDC and NeighborWorks to support housing work in Montana.

Panelists also urged more unrestricted giving to support nonprofit operations. "Letting a nonprofit have unrestricted dollars...goes a long way," Allen said, arguing that operational funding keeps programs running.

The City Club forum concluded with table talks and a reminder of the next panel on June 8. The session was recorded by Missoula Community Access Television (MCAT).