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December 2, 2002

Kaleva Community and Finnish Heritage Scholarship Fund Benefits Students and Donors: Fund Qualifies for the Michigan State Tax Credit

The Kaleva Community and Finnish Heritage Scholarship Fund was started with in initial donation of $100,000 by Kaleva native Mel Fennell. The Fennell family established the Fund as a way of preserving the memory of early Kaleva Settlers and at the same time the supporting Kaleva graduates in their pursuit of a secondary education.

As the year end approaches donors, with a heart for supporting the Kaleva Community and Finnish Heritage Scholarship Fund, can also benefit from the Michigan State Tax Credit. As a scholarship fund of the Manistee County Community Foundation the law permits a taxpayer to reduce Michigan Income Tax or Single Business Tax liability by a credit of 50% of the amount contributed to this fund, subject to a maximum credit of:
a. $100 for an individual filing single (based on a $200 contribution)
b. $200 for a married couple filing jointly (for a $400 contribution)
c. $5,000 or 10% of tax liability before claiming any credits, whichever is less for a resident estate or trust (for a $10,000 contribution)
d. $5000 or 5% of tax liability before claiming any credits, whichever is less for taxpayers filing Michigan Single Business Tax returns (for a $10,000 contribution)
For example:
  • Married Couple
  • $400 actual cost of a gift to the Kaleva Community and Finnish Heritage Scholarship fund.
    (assuming a Federal Marginal Income Tax rate of 31%)
  • $124 savings from federal taxes
  • $200 savings from state taxes is 1/2 the gift
  • $324 total tax savings

  • $76 actual cost of the gift to the donor

Note: This information is for illustration only. Your particular tax situation should be discussed with your personal or corporate tax advisor. (please do not use this example without the disclaimer!)

The goal is to grow the scholarship fund each year. Since 2000 this scholarship fund has granted out $17,000 to students for their college education. If you are interested in helping KND graduates attend college, you can donate through the school or "on-line" through the Manistee County Community Foundation. To find out more about the scholarship fund check out the web page at manisteefoundation.org. On this web page you can also give "on-line." For more information please contact Karen Bruchan (723.7269) at the Manistee County Community Foundation.