Tax Credits for Donations to End
Posted by Amy Clickner on December 9, 2011
As you may or may not know, January 1, 2012 will mark the end of tax credits from the State of Michigan for donations made to charities and non-profits. Until now, Michigan has offered a tax credit of 50 percent of an individual’s donation, worth up to $100 per year. So, if you donated $200 you would receive $100 back on your taxes. Anything above a $200 donation has not been eligible for a credit from the State.
Though the tax kick-back might be perceived as relatively small, the thought of eliminating the incentive for donations can seem unsettling to many non-profits, especially at a time when our State is recovering from an economic downturn and funding sources are becoming thin. However, donations to charities and non-profits should not be based on the fact that they can be itemized on one’s tax returns, but because of interest in supporting the mission and cause of a particular organization. Many of these types of organizations play key roles in keeping our communities fed, safe, hospitable, fun, vibrant and progressive.
In the past, Michigan residents have been generous participants and givers. According to a 2009 study, 87 percent of Michigan residents on average make charitable contributions each year, with nearly 50 percent of adults volunteering for non-profit organizations. It is my hope that the people of this great State continue their charity.
But it goes beyond food pantries and humanitarian aid. Almost all of our unique events in Marquette County are spearheaded by non-profit organizations such as the Negaunee Irontown Association and the Marquette 4th of July Committee. Some help our area youth such as the Marquette-Alger Great Start Collaborative and the Great Lakes Center for Youth Development, and others fund various aspects of our community like the Marquette County Community Foundation.
My point is that many organizations which make our community so particularly vibrant and wonderful rely heavily on your charitable donations, and will continue to need your support even after the $100 tax credit expires. There are, however, a few weeks left in 2011 to take advantage of the 45 year old Michigan income tax credit for charitable donations! With the holiday season upon us and the end of the year fast approaching, it’s the perfect time to open your wallet and your heart to help a great cause in our community.
Of course, I would be remiss if I didn’t give a shameless plug for our own Lake Superior Community Partnership Foundation! The LSCP Foundation’s primary mission is to promote and advance economic and workforce development in the Upper Peninsula by working with area business leaders to determine workforce needs and appropriate use of resources; to promote and advance education by working for systemic change in area school systems to address workforce needs in the community; and to promote and advance cultural and recreational activities through grants and coordinated efforts with other community grant making agencies.
To learn about the projects of the LSCP Foundation and make a donation, visit our Web site, www.marquette.org and click on “Donate” under the Participate menu.
