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What
are the Benefits of Giving?
Supporting the Lenawee County
community and its future is the key reason most
contributors choose to give to the Lenawee Community
Foundation.
Other advantages of being a donor include:
·
Local Impact — Staff, board members, and
local residents work together to assure that grants
are targeted for the maximum benefit for our
community.
·
Permanence — Most gifts to the community
foundation are endowed to last and make an impact
forever.
·
Accountability — Board members assure
accountability to the community through sound
financial and investment policies and management,
including professional investment managers and an
annual audit.
·
Economies of Scale — Although each fund has
its own identity, purpose, and data tracking, funds
are pooled for investment purposes.
This reduces risk, maximizes performance, and
lowers overhead costs for each fund.
There are many ways to contribute and
accomplish one’s charitable objectives, while
minimizing paperwork that individuals might have to
do on their own.
·
Tax Advantages — Federal tax deductions and
Michigan tax credits are available to donors.
How does the Michigan Tax Credit Work?
Once all the tax savings are
taken into consideration, the net cost of a cash
gift to the Lenawee Community Foundation or any of
its 50 endowed funds is considerably less than the
original contribution.
After the state tax credit and a
federal tax deduction, a $400 cash gift can cost a
married couple less than $65, including the stamp.
Following are some examples of the tax
benefits
|
|
Single Taxpayer |
Married Taxpayer |
Resident Estate or Trust
or
Corporation |
|
|
|
|
|
Amount of Gift
|
$200
|
$400
|
$10,000
|
|
State Tax Credit
|
$100
|
$200
|
$5,000
|
|
Federal Tax Rate
|
29%
|
34%
|
34%*
|
|
Federal Tax Savings
|
$58
|
$136
|
$1,700
|
|
Total Tax Savings
|
$158
|
$336
|
$6,700
|
|
Actual Cost of Gift
|
$42
|
$64
|
$3,300
|
*The federal tax liability is
adjusted for a decrease in the Michigan Single
Business tax deduction.
The Michigan tax credit is a 50%
tax credit up to $100 for single taxpayers, $200 for
married taxpayers, and $5,000 for resident estates
and trusts, or businesses filing single business tax
returns.
The actual cost is calculated in the year of
the gift.
Federal tax savings vary depending on one’s income
level and tax bracket. To request a brochure about the Michigan Tax Credit, contact
the Lenawee Community Foundation at 423-1729.
This chart is for information purposes, and
we recommend that you consult with your personal tax
advisor for assistance with tax credits.
What are Some Ways to Contribute?
The Lenawee Community Foundation
recognizes that each individual, family,
organization, or corporation with whom we work has
unique charitable interests and financial
circumstances. Your attorney, accountant, insurance agent, financial planner, or
trust officer can assist you in determining the
methods that will achieve your charitable goals,
while receiving the maximum
tax and
legal advantages
allowed for your gift. You
may also contact the Lenawee Community Foundation at
423-1729 for further assistance.
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