Community Foundation of Troy;Troy, MI 48098

Thanks to the Michigan Tax Credit for Community Foundations, you can multiply the effect of your charitable gift and receive a generous tax credit on your Michigan State taxes. The law permits taxpayers to reduce their Michigan Income Tax or Single Business Tax liability by a credit of 50% of the amount contributed to a community endowment fund, subject to a maximum credit of:

$100 for an individual filing individually (based on a $200 contribution)
$200 for a married couple filing jointly (based on a $400 contribution)
$5,000 or 10% of tax liability before claiming any credits, whichever is less, for a resident estate or trust (based on a $10,000 contribution)
$5,000 or 5% of tax liability before claiming any credits, whichever is less, for taxpayers filing Michigan Single Business Tax Returns (based on a $10,000 contribution)

The table below shows examples of out-of-pocket costs for a $400 contribution based upon various federal income tax brackets, for a family filing a joint tax return (individual filers will be half the amount shown):

Federal Tax Bracket	15%	28%	31%	36%	39%
Amount of Contribution	$400	$400	$400	$400	$400
Reduction of Federal Income Tax after deductions	$60	$112	$124	$144	$156
Michigan Tax Credit (50% of gift to $200 max.)	$200	$200	$200	$200	$200
Out of Pocket After Tax Cost	$140	$88	$76	$56	$44

This information is intended for explanation purposes ONLY. Actual tax-related savings may vary depending on your income level and tax bracket. Your personal tax advisor can assist you with the tax credit arrangements. The tax credit is an addition to those available for donations to public broadcasting stations, Michigan colleges or universities and public libraries. The tax credit is also in addition to the deduction for Federal income tax purposes.

Click here to see a copy of our IRS Determination Letter for 501(c)(3) status

Click here to see a copy of our State of Michigan Community Foundation status