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Fri November 25, 2011
Michigan's charitable tax credit expires Dec. 31
Nonprofits across Michigan are doing their annual end-of-year holiday push for financial donations. This will be the last time donors will be able to take advantage of a charitable tax credit.
As Michigan Radio's Mark Brush reported, "the credit allows Michigan taxpayers to essentially double their contribution when they give to community foundations, homeless shelters, food banks and public institutions (such as Michigan universities, museums, public libraries, and public broadcasting stations).
For a single filer, half their contribution can come off their Michigan tax bill up to a $200 contribution. Joint filers can take half of a $400 contribution."
But come January 1st, that tax credit will be no more.
Kyle Caldwell is president of the Michigan Nonprofit Association. He says getting rid of the tax credit won’t necessarily discourage people from giving, but it will greatly influence how much they give to food banks, homeless shelters and public institutions like libraries and public radio stations.
Scholarships from community foundations will also take a hit:
"The repeal of the Michigan tax credit will negatively impact people's ability to get scholarship funds because there’ll be fewer funds available."
Caldwell says donations from individuals and foundations make up about 70% of nonprofits’ funding.