January 13, 2006
LANSING –The Department of Human Services today announced this tax season taxpayers have the opportunity to help fight child abuse when filing Michigan taxes using the Children’s Trust Fund (CTF) Michigan income tax check-off.
"No child should live in fear of abuse and preventing abuse is what the CTF check-off is all about," Governor Jennifer M. Granholm said. "Children are the future of this great state and by contributing to CTF you are making an investment in Michigan’s future that is guaranteed to pay off."
Public Act 160 of 2005 amended the Income Tax Act to reinstate the income tax check-off that allows taxpayers to contribute money to the CTF. An individual can now designate on his or her annual return that a contribution of $5 or more of his or her refund be credited to the CTF for tax years beginning January 1, 2005.
"Child abuse is an all too common problem in Michigan – a child is reported as abused or neglected every four minutes," Richard Bearup, director of the Children’s Trust Fund, said. "The CTF helps prevent child abuse and neglect. Reinstating the income tax check-off allows us to continue to provide much-needed financial support for a variety of important child abuse and neglect prevention programs throughout the state."
From 1983 through 2000 a check-off on Michigan’s income tax form allowed an individual to donate $2 or more of his or her refund to the CTF. During that time, over 2.2 million Michigan tax returns generated over $14.8 million for the CTF. After 2000, the CTF’s balance exceeded $20 million and the check-off was discontinued at that time in accordance with a provision in the Income Tax Act that required the removal of the check-off when the fund’s balance exceeded that amount.
In the years since then, only the interest and earnings of the CTF have been available for disbursement. Fluctuations in the stock market have resulted in slower growth than was expected for the CTF’s assets, causing concern that the CTF would not earn enough to cover its future obligations.
The CTF provides funding to 71 local child abuse and neglect councils, representing 81 of Michigan’s 83 counties. Dollars donated to CTF are also used to provide funding for prevention programs in the donor’s own community.
"Michigan taxpayers are encouraged to join in the fight against child abuse and neglect by donating via their tax returns this year," Nancy Moody, CTF board chair, said. "Every dollar spent on prevention saves the state $20 in crisis management. Through the goodwill of Michigan taxpayers putting their money where their heart is, they will not only protect Michigan’s children, but they will also save precious state resources for other needed organizations like our schools."
The check-off is located on line 30 of the Michigan tax form. Taxpayers will need to fill in the amount they wish to donate, with the minimum being $5. The donation can be deducted on the next year’s tax form.
In addition to the CTF check-off, residents wishing to contribute to the CTF can do so by sending a check or money order directly to the CTF at P.O. Box 30037, Lansing, MI 48909. Residents are also encouraged to participate in the CTF’s local fund raising activities.
The CTF is the only statewide, non-profit organization in Michigan dedicated solely to the prevention of child abuse and neglect. Since 1982, the CTF has raised over $80 million and provided support to over 8 million children and families. The CTF is administratively housed within the Michigan Department of Human Services.
For more information about the CTF call (517) 373-4320 or visit the Michigan Department of Human Services Web site at www.michigan.gov/dhs and click on Boards and Commissions and then on Children’s Trust Fund.