Benefits

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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.