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Tax Changes Charities

Savanna Davis,1, gets a hug from Patricia Marshall, of Detroit, at the daycare center at COTS (Coalition On Temporary Shelter) in Detroit. Some charitable organizations in Michigan have reported a decline in donations following tax changes that eliminated state credits for financial gifts to food banks, homeless shelters and certain nonprofits. Gov. Rick Snyder and the GOP-led Legislature made the changes to help balance the state's budget. In 2011, about 234,000 Michigan taxpayers claimed $19.5 million in tax credits through donations to homeless shelters and food banks.

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