Donor Information

Michigan Tax Credit

Donor Form

• $100 for an individual filing singly (for a $200 donation)
• $200 for a married couple filing jointly (based on a $400 donation)
• $5,000, or 10 percent of tax liability before claiming any credits, whichever is less, for a resident estate or trust (based on a $ 10,000 gift);
• $5,000, or 5 percent of tax liability before claiming any credits, whichever is less, for taxpayers filing a Michigan Business Tax return (based on a $ 10,000 gift).

This credit is in addition to those available for donations to Michigan colleges and universities, public libraries, public broadcasting stations and homeless programs. Your donation continues to be deductible as a charitable gift for federal income tax purposes. Not all organizations that call themselves community foundations qualify for the tax credit. Only those community foundations certified by the Michigan Department of the Treasury as qualifying for the tax credit are eligible. Community foundations have four types of endowment funds:

• unrestricted - allows the Board of the Foundation to fund projects as it sees fit
• field-of-interest - such as youth, the environment, the arts, and scholarships
• donor-advised - allows the donor to recommend specific charities
• agency - established by local nonprofit organizations for their benefit (such as boys and girls club) or by public nonprofit organizations (such as libraries, school systems, and local units of government).

Gifts to any of these four types of endowment funds qualify for the tax credit. Source: Council of Michigan Foundations

Please consult your tax preparer for information on other tax benefits for donating to a nonprofit organization.

Donor Form

Never Miss a Chance to Endow

1. Durability
   A continued flow of charitable financial support is important to donors. The fund is professionally invested taking into consideration the importance of growth.
2.  A Giving Legacy
   Creating an endowment creates a legacy that will endure for years. Family and friends will be reminded of the person's values and commitments. Endowment funds can also be used to honor others who have impacted them and the community.
3.  Perpetuate Annual Gifts
   An endowment can create an "annual gift". It is a way to keep giving and supporting the community for many generations. There is no maximum level for an endowed fund, and it may be increased at any time. Others may also add to the endowment fund.
4.  Personal Satisfaction
   To have your name on an endowment fund that will benefit others carries personal satisfaction.
5. Provide Flexibility
   When endowments are contributed toward general use, they provide flexibility for NCF to utilize funds as needed. This is extremely important as programs and needs change.  Beyond the satisfaction of helping your community, there are additional benefits that result from contributing to the community foundation.  Contributions are deductible under section 501(c)(3) of the Internal Revenue Service tax code.  The Northville Community Foundation is also certified by the State of Michigan permitting an additional 50% tax credit.  Gifts of appreciated securities and real estate donated to the foundation create an even larger deduction for the donor as well as much larger gift for the Foundation.

Who Should Endow?

•  Residents
•  Senior citizens
•  Schools
•  Organizations
•  Municipalities
•  Corporations
•  Businesses
•  EVERYONE

How Can I Endow?

Call (248)374-0200 - Your Community Foundation

Michigan Community Foundation Tax Credit Examples:

*Note: Actual cost is calculated in the year of the gift. This information is intended for explanation purposes only. Actual tax related savings may vary depending on your income level and tax bracket.