The Michigan Senate passed bipartisan legislation last week that would reinstate the Michigan Charitable Tax Credit and incentivize charitable giving.

As CMF reported, the Michigan Charitable Tax Credit, eliminated as part of tax reform in 2011, unlocked opportunities by incentivizing families of all income levels to give charitable donations to endowed funds at community foundations across the state, strengthening our nonprofits. 

The tax credit allowed Michiganders to deduct 50% of their donation or gift capped at $200 for single filers and $400 for joint filers to a Michigan community foundation, homeless shelter, food bank or public institution on their tax statements.

Immediately following the repeal of the tax credit, research by the Johnson Center for Philanthropy found that from 2011 through 2013, there was a 50% decline in $400 donations and a 27.5% decline in $200 charitable donations.

CMF, along with our members and partner organizations, have been advocating for the reinstatement of the charitable tax credit for contributions made to endowed funds held at community foundations or donations to homeless shelters, soup kitchens and food banks.

Laurie Strauss Baumer, president and CEO of the Capital Region Community Foundation, testified before a Senate committee to advocate for the newly introduced bills.

“After the tax credit was eliminated in 2012, we saw a sharp decline in gifts to hundreds of endowment funds, including a loss of over 70% to over 100 funds held by nonprofits. We’re grateful to the senators on both sides of the aisle who are supporting these bills to reinstate the tax credits,” Baumer said.

The legislation moved to the House and has now been referred to the House Committee on Tax Policy for consideration.

If you have any questions about the Michigan Charitable Tax Credit, please connect with Regina Bell, CMF’s director of Government Relations and Public Policy.

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