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Michigan Community Foundation Tax Credit

Did you know that when you make a gift to one of the Midland Area Community Foundation's (or Clare County Community Foundation's) endowed funds that contribution may be worth up to three times the actual expense? Thanks to the Michigan Community Foundation Tax Credit, you can multiply the effects of your charitable gifts and receive a generous tax credit on your state taxes.

Individual (Non-Itemizer) 
Your $200 gift may only cost $100.

The actual cost of your $200 gift to a Community Foundation endowed fund could be as little as $100.

Your savings would be $100 on state taxes (50 percent of $200, the maximum amount eligible for credit), making the true cost of the gift only $100.

Married Couple 
Your $1,000 gift may only cost $576.

Assuming a Federal Marginal Income Tax Rate of 28 percent, the actual cost of your $1,000 gift to a Community Foundation endowed fund could be as little as $576.

Your savings would be $200 on state taxes (50 percent of $400, the maximum amount eligible for credit), plus $224 on federal taxes if you itemize. Your total savings would be $424, making the true cost of the gift only $576.

Business 
Your $10,000 gift may only cost $3,300.

The actual cost of a $10,000 gift to a Community Foundation endowed fund could be as little as $3,300 (assuming a projected Michigan Business Tax liability of $100,000 and a Federal Marginal Income tax rate of 34 percent).

Your savings would be $5,000 on state taxes (50 percent of the gift), and $1,700 on federal taxes. Total savings would be $6,700, making the true cost of the gift only $3,300.


PLEASE NOTE: This information is intended for explanation purposes only. Actual tax-related savings may vary depending upon your income levels and tax brackets. Gifts to the Community Foundation are fully tax deductible for Federal Income Tax purposes and will be promptly acknowledged with a confirmation, which includes indication of tax credit eligibility to be used in the preparation for State of Michigan Income Tax Returns. These examples take into account the fact that the Michigan tax credit must be considered income on the federal tax return the year following the deduction.