The following definitions apply to this sub-chapter:

(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 15-30-165 , 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) "Beneficial interest" is a taxpayer who has a beneficial interest in a business when the taxpayer is either a sole proprietor, partner, or shareholder in an S corporation.

(3) "Donor" means an individual, corporation, estate, or trust that contributes to a qualified charitable endowment as required by 15-30-165 , 15-30-166 , 15-30-167 , 15-31-161 , and 15-31-162 , MCA.

(4) "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 policy does not have to be on the life of the donor.

(5) A "permanent irrevocable fund" is a fund which receives or will receive the charitable gift portion of a planned gift or a direct charitable contribution, and holds the charitable gift or contribution on behalf of a tax-exempt organization under 26 USC 501(C) (3) , for the life of the organization. The present value of the fund at the time that the donor makes a planned gift or an outright contribution to the fund is not expendable by the tax-exempt organization on a current basis under the terms of the applicable gift document or other governing documents. For the purpose of the qualified endowment credit, the fund must be used primarily for the benefit of Montana communities and citizens.

(6) "Present value of the charitable gift portion of a planned gift" is the allowable amount of the charitable contribution as defined in 15-30-121 and 15-30-136 , MCA, or for corporations as defined in 15-31-114 , MCA, prior to any percentage limitations.