Research shows that almost 85% of Michigan residents make monetary contributions or donate goods and services, according to a 2010 survey. Charitable giving can be done on an individual basis, such as a direct gift to your favorite nonprofit, or creating a giving circle, where individuals pool their dollars and decide together where to donate their collective contributions. On a more formal, organized basis, giving options include establishing a private foundation or creating a donor-advised fund at a community foundation. Here is more information about three common organized charitable giving options:
A comparison of three options for organized giving based on the critical issues of donor control, time commitment, and tax advantages may be helpful in your decision-making process. Taking the time to answer the following questions may also help you determine the right giving option for you:
In considering these questions and deciding to proceed with the creation of a more formal giving option- a private foundation, a donor advised foundation at a community foundation, or a corporate giving program - please contact the Council of Michigan Foundations for a complimentary consultation. If you are interested in creating a nonprofit that will need to do public fundraising, we encourage you to check out the Principles and Best Practices developed by the Michigan Nonprofit Assiciation at www.mnaonline.org.