Several State Tax Credits for Donations to Expire
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Updated: 11:29 PM Nov 11, 2011
Several State Tax Credits for Donations to Expire
Michigan tax credits for donations to homeless shelters, food banks, universities and libraries will expire in 2012 after being cut during budget talks this year.
Posted: 11:29 PM Nov 11, 2011
Reporter: Alex Goldsmith
Email Address: alex.goldsmith@wilx.com
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Dozens of men pack the City Rescue Mission of Lansing off of Michigan Avenue on a Friday night.

After checking in and sitting through a service, the men line up and fill their trays with a nice hot meal. The shelter here will be where many of these men will sleep.

"What would I do without it, sleep under the bridge?" said Patrick Johnson, who has stayed here for around 7 months. "I don't know what I'd do with it."

The City Rescue Mission has been around 100 years and relies entirely on donations to fund the approximately 111,000 meals it will give out this year.

"Our budget's $1.6 million a year," said Mark Criss, the City Rescue Mission's executive director. "We don't receive any government funding, no state or federal funding. We wouldn't exist if it wasn't for the blessings of those who want to give."

Giving to homeless shelters in Michigan comes with a state tax break. Right now, every dollar spent gets donors a 50 cent credit from the state, up to a certain amount.

But that's about to change.

The state credit, along with similar ones for donations to universities, food banks, public broadcasting stations, libraries and other public institutions was eliminated in this year's budget cuts.

From the credit that covers food banks and homeless shelters alone, the state expects to save $16.5 million according to the House Fiscal Agency.

MSU economics professor Charlie Ballard says the change will likely make it harder for charities to bring in donations, although it's tough to say how much harder.

"The tax break isn't the only reason people give to charities, but it is part of it," said Ballard. "I don't think they'll lose all their contributions but they will face a more difficult fundraising environment."

But Criss says he doesn't expect the City Rescue Mission to see a major drop in funding because the tax credit is no longer there.

"[Our donors] believe in helping others and I think they'll still do that no matter what kind of credit they get or don't get," said Criss.


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