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The Shiawassee Community Foundation is an easy way for all citizens to give something back to their community. Giving through the Foundation is not complicated, nor does it require great wealth. Over the years, the foundation has received gifts from numerous donors ranging from $1 to $2.1 million.
You have several options when making a gift to your community foundation. You may contribute to one of our named funds under Fund Information. All donors are sent an acknowledgement letter for tax purposes.
Gifts can be made in memory of a loved one or to honor someone celebrating a special event like a birthday, anniversary, wedding, or a holiday. The foundation will send the special person a letter stating that a gift was made in their honor. If a gift is made in memory of someone, the foundation will send a letter to the family advising them of the donation.
All donations to the community foundation are eligible for the Federal Income Tax charitable deduction. Gifts to permanent endowment funds are eligible for the Michigan State Tax Credit. Here’s how it works:
Current law permits a taxpayer to reduce Michigan income tax or Single Business Tax liability by a credit of 50% of the amount contributed to an endowment fund at a community foundation, subject to a maximum credit of:
- $100 for an individual filing singly (for a $200 donation)
- $200 for a married couple filing jointly (for a $400 donation)
- $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 gift)
- $5,000 or 5% of tax liability before claiming any credits, whichever is less, for taxpayers filing a Michigan Single Business Tax return (based on a $10,000 gift)
ESTABLISHING A FUND AT THE FOUNDATION
One of the major responsibilities of the foundation is to carry out the original donor’s intent for each fund in perpetuity.
The foundation offers the following types of funds:
- Field of Interest Fund (Click here for further information)
- The founding contributor establishes this type of fund to support a specific charitable interest such as the arts, youth, ecology, services for the elderly, or health and human services.
- Designated/Agency Fund (Click here for further information)
- Individuals or non-profit organizations establish this type of fund and grants are awarded to a specific agency and/or non-profit as a source of on-going support
- Scholarship Fund (Click here for further information)
- The founding contributor advises the Foundation what the criteria will be of the scholarship fund.
The minimum required to create a new fund is $5,000. Distributions from the fund begin after the fund balance reaches $10,000 and earnings are sufficient to award a grant. Determination of the annual grant/scholarship amounts are based on the previous 28 quarters moving average balance of the market value of the endowment fund ending September 30th. Funds are charged a 1.5% administrative fee annually from the income of the fund.
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