LANSING - As 2011 comes to an end, so will Michigan's charitable tax credits. Because these credits will soon expire, non-profit organizations across Michigan are urging donors to take advantage of the credits while they are still available.
Times are still financially tough for many trying to recover from the recent recession, but Michigan charities and non-profits will soon feel another financial blow as Michigan's charitable state tax credits expire.
President of the Michigan Nonprofit Association, Kyle Caldwell, says he saw donation numbers begin to drop even before the credits' expiration date was announced.
"It's a challenging time for non-profits and the communities they serve. Unfortunately, we're seeing a lot of pressure on individual donors. They're able to give less because they have less to give and we're losing leverage-able opportunities and one of those losses is the Michigan Charitable Tax Credit which will expire at the end of this calendar year," says Caldwell.
The tax credit has been targeted at low and middle income earners, where donors could receive $100 or $200 tax credits by donating to certain Michigan charities and non-profit organizations.
The decision to eliminate Michigan Charitable tax credits occurred in the fall as part of the overall tax overhaul package for small businesses. As of now, the Michigan Nonprofit Association is looking for other ways of incentivizing giving, but also opportunities to bring back the Michigan charitable tax credit.
ORIGINAL STORY: LANSING - Michigan charities are urging donors to give before the state charitable tax credit ends with 2011.