Michigan taxpayers and charitable donors take note. In late September, the state House passed a series of measures that would restore tax credits for charitable contributions to three types of nonprofits: community foundations, homeless shelters, and food banks.
The tax credits were eliminated as part of broad statewide tax reforms in 2011 and nonprofit advocates argue that restoring the tax credit would bolster donations in a time of need.
The House bill would result in a tax credit equal to 50% of the amount contributed to foundation endowments as well as shelters and food banks with a $100 cap on individual taxpayers and a $200 cap for joint filers.
The tax credits, which originally took effect in 1989, were meant to incentivize giving from first-time contributors. When the credit was repealed in 2011, the number of first-time donors to foundations, shelters and food banks declined 37.5% (Dorothy Johnson Center for Philanthropy).
Let me add my voice to those supporting this measure as it heads to the Michigan Senate. Anything state (and for that matter, federal) government can do to encourage generosity among the American people is a good thing. It strengthens communities and encourages a spirit of selflessness that is sorely needed at this time in our history. Read the full bill at http://www.legislature.mi.gov/documents/2019-2020/billengrossed/House/pdf/2019-HEBH-4993.pdf and consider contacting your state Senator to encourage their support of this measure.