How it WorksA fifty percent direct Michigan personal income tax credit or Michigan single business tax credit applies to all gifts to certified community foundations up to:

  • $100 for an individual taxpayer who is single, or married and filing separately.
  • $200 for a married couple filing jointly.
  • $5,000 or ten percent of the tax liability before any credits (whichever is less) for resident estate or trust.
  • 5,000 or five percent of the tax liability before any credits (whichever is less) for businesses filing single business income tax returns.

Originally signed into law December 29, 1988, the Michigan Community Foundation Tax Credit was designed to encourage individuals and businesses to build the permanent endowments of community foundations across the state. This tax credit is intended to bring additional dollars to communities by generating new donors and encouraging more permanent endowment support rather than tempting donors to shift their dollars from other organizations. Since 1988, the tax credit has been renewed two times and a $3 million cap was removed from the original bill.

Contributions to certified Michigan community foundations such as the GACF allow donors to take as a credit against their State of Michigan tax an amount equal to 50 percent of the gift, up to certain limitations ($100 maximum for an individual return; $200 for joint returns). For donors paying single business tax, they may take as a credit the lesser of 50 percent of the gift up to $5,000 or 5 percent of their single business tax liability. This credit is in addition to those available for donations to public broadcasting stations, Michigan colleges, or universities and public libraries. The tax credit is also in addition to the deduction for Federal income tax purposes.

For more information regarding how the Michigan Community Foundation Tax Credit could enhance your charitable giving, contact the GACF office or talk to your financial advisor.

 

GACF BOARD VARIANCE POWER: The GACF Board shall have the power to modify any restriction or condition on the distribution of funds for any specified charitable purposes or to specified organizations if in the sole judgment of the board (without the approval of any trustee, custodian or agent), such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment or inconsistent with the charitable needs of the community or area served. (See also Article III, Section 1 (D) of the community foundation Bylaws.)