Michigan Community Foundation Tax Credit to expire at end of 2011

Creation of the Michigan Community Foundation Tax Credit 20 years ago was a major accomplishment for community foundations across the State of Michigan. We were the first state in the country to have such a tax credit and the stories of how it helped grow the endowed assets of Michigan community foundations to more than $2 billion are inspiring. Unfortunately, the tax reform package passed by the Michigan legislature in May eliminates the Michigan Community Foundation Tax Credit, long appreciated by donors and nonprofits alike.

However, it is important to note that this change will not take effect until 2012, which means donors may still take advantage of the Michigan Community Foundation Tax Credit through Dec. 31, 2011.

The Michigan Community Foundation Tax Credit permits taxpayers to reduce their Michigan Income Tax or Michigan Business Tax liability by a credit of up to 50 percent of the amount contributed to a community foundation endowment fund.

  • If an individual filing singly contributes $200 or more, the tax credit will be $100.
  • If a married couple filing jointly contributes $400 or more, the tax credit will be $200.
  • If a business filing a Michigan Business Tax return contributes $10,000 or more, its tax credit will be $5,000 or five percent of tax liability before claiming any credits, whichever is less.

If you would like to make a gift to an endowed fund and take advantage of this generous tax credit while it is still available, please consider giving to one of our Spirit of Community Funds. They provide us with the resources and flexibility required to address our community's ever-changing needs. In addition, there are many other endowed Designated Funds that support nonprofits that contribute so much to our community.

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