Existing donors automatically have a reservation for 2019 at their same contribution level. This level can be changed by written signed instructions or in July 2019 we will contact existing Fall 2019 donors with a preprint 2019 joinder and request for any changes by email or mail during July 2019.
Our SPE EITC program allow donors to redirect their Pa taxes as scholarships to Pa tuition charging PreK and K-12 school of the donors choice. 100% of the donation is transferred from the SPE to Central Pennsylvania Scholarship Fund and then paid out to schools as scholarships after the school completes scholarship applications. The most important tax item required of the donor and their accountant is selecting the correct donation amount and reporting the annual K-1 so a Pennsylvania tax credit is claimed and any Pennsylvania refund requested.
The donors receive a K-1 form annually in February and personal refunds do get delayed by Pennsylvania until July thru September each year. The tax benefit of donating is a 90% Pennsylvania use or lose tax credit and a federal donation deduction tax benefit of some portion of the remaining 10% cost depending on the donors unique federal tax calculation. Successfully redirecting your Pennsylvania taxes to a local family as scholarships can change a child’s education and benefit them tremendously so participating as a donor in the EITC program creates tremendous community benefit. The tax incentives provided to the donor allow major community benefits with a minor individual net cost.
Donors are encouraged to assist with connecting us with school officials to obtain necessary scholarship paperwork and schools are encouraged to thank donors and lead the communication with donors and their concerns. We are happy to coordinate with accountants local to the school and donors. Our charity works as a network of schools and their supporters as administrative funds for the charity are limited and do not come from SPE EITC donors.
Thank you to all the donors, school development officers and accountants who have participated to date in our charity and SPE. Our open network of schools and dedicated partners have created a successful charity and it has been my pleasure and Tami Clark’s pleasure to serve you in the past and will continue to be our pleasure to serve your Pennsylvania Education tax credit needs and Special Purpose Entity (SPE’s) participation in the future.
If you need further information please feel free to reach out to Tami Clark or me for further clarification of your needs or clarification of our program for yourself, your school or your accounting firm clients.