LANSING, Mich. (June 10, 2025) — Today, the Michigan Senate passed bipartisan legislation to strengthen charitable giving among Michigan’s working families. Sponsored by Senate Majority Floor Leader Sam Singh (D-East Lansing), Senate Bill 132 would provide a tax credit for donations to endowed funds at community foundations, encouraging more Michiganders to give while enhancing support for the state’s network of nonprofits.
“We know these types of tax credits work to spur charitable giving because it worked here in Michigan for over 20 years and is currently working in other states around the country,” said Sen. Singh. “Restoring our state’s charitable tax credit would empower more Michiganders, regardless of income level, to be a part of the good work being done in our communities while providing our nonprofits with the support needed to continue caring for our friends and families around the state. I’m thrilled to see this legislation pass the Senate with bipartisan support, offering a smart and powerful tool that would cement Michigan’s role as a long-time leader in the nonprofit sector.”
To address the decline in charitable giving among low and middle-income households following the elimination of Michigan’s original charitable tax credit in 2011, this legislation would encourage more Michiganders to give by allowing them to claim an income tax credit for half of their donation to an endowed fund at a community foundation. This credit would be capped at $100 for individuals and $200 for joint filers. Resident estates and trusts would also have an opportunity to claim up to 10% of their tax liability, capped at $5,000. Not only would this empower more residents to invest in their communities — it would offer budget and operational stability for nonprofits around the state and the vital services they offer.
“We appreciate Senator Singh’s leadership and the work of the Michigan Senate in getting this important legislation passed. Allowing working families to receive a credit for their charitable giving not only spurs future giving but provides much-needed support for nonprofit organizations who work tirelessly to address community needs,” said Regina Bell, Chief Policy Officer of the Council of Michigan Foundations. “We look forward to working with the House to move swiftly in getting this bipartisan legislation to the Governor’s desk, and this modest yet impactful tax relief to Michigan families and communities.”
This legislation has widespread support from foundations and stakeholders around the state, as well as from policymakers on both sides of the aisle. It is now headed to the House for consideration.