Make A Gift To Help Children Learn About Nature… and Get a Tax Credit for Yourself!
The PA EITC Program Now Allows Individuals To Participate In Tax Credit Incentives
PA individuals that are eligible may give to eligible organizations and receive PA state tax credits up to 90% of their charitable donation with a two-year commitment (75% for a one-year commitment).
College Settlement is an Educational Improvement Organization (EIO) approved by the Commonwealth of Pennsylvania’s Department of Community and Economic Development (DCED) and as such is authorized to receive donations through the EITC Program.
EITC now allows Individuals to give through a Special Purpose pass-through entity (SPE) that allows for the use of credits on joint personal income tax returns.
Partnering for Our Children
- College Settlement is associating with an SPE affiliated with the Central Pennsylvania Scholarship Fund (CPSF) (Federal EIN 45-4423429) to apply for Education Tax Credits
- The Central PA Scholarship fund was established 9/13/2011 to facilitate the matching of donors with qualified educational organizations. The organization is managed by Randy Tarpey, CPA. Randy is a practicing CPA with several offices in PA.
- All services are donated by the CPSF. Therefore, 100% of the donation will go towards College Settlement.
- Go to www.pennsylvaniaeitc.org/contact-us.html for a partial listing of organizations funded by the Central Pennsylvania Scholarship Fund Through 2017.
- These funds help schools send their children. A donation to College Settlement through CPSF can be used to pay for students from any school to attend. You may specify a school if you wish.
- The Central Pennsylvania Scholarship Fund through their SPE Bulldog Pride, LLC, (although this may change depending in the availability of the EIO tax credits) can receive your donation and College Settlement will receive 100% of it, if so directed by you.
- By taking part in this initiative and making a commitment for two years you will receive a 90% PA state tax credit.
- This means your donation will cost no more than 10% of what you are giving to College settlement.
Qualifications for Participation in the SPE
- Minimal annual donation must be $3,500 (which after the tax credit will cost you less than $350 annually for a two-year commitment).
- Donors, and members of the SPE, must be shareholders, partners, members or employees of one or more Business Firms. A Business Firm is any for-profit business authorized to do business in Pennsylvania… as an example, owning one share of Comcast stock would qualify you. The definition of business firm does not include sole proprietorships (unless organized as an LLC) or entities not subject to tax.
How to Participate
- Donors wishing to participate in the program should complete a Joinder whereby they become members of the SPE. (Joinder and LLC Member Agreement is available at www.collegesettlement.org/joinder.html. The completed Joinder should be sent to Susan Daily at College Settlement.
- Joinders will be submitted to the Central Pennsylvania Scholarship Fund as early as possible in 2019 as the available EIO credits are on a first come basis.
- The SPE applies for the credits in May 2019. It is a priority filer as it is a current participant in the program.
- The SPE receives notification of the credits that it has been awarded, typically in the fall.
- The SPE notifies the donors of the credits awarded and the donor transfers the funds to the SPE within 30 days. If the SPE does not receive the credits, the donors will not need to fund the donation.
EITC tax credits are available to offset the following Pennsylvania State Taxes:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institution Tax
- Insurance Company Law of 1921
- Personal Income Tax of S Corporation Shareholders
- Personal Income Tax of Partners/Members
Interested? Want to Take The Next Step?
- Brian Simard, Director of Development, College Settlement
- Terry Dougherty, Executive Director, College Settlement
- Teri Ohliger, President, Board of Trustees, College Settlement
Disclosure: Any advice contained herein (including any accompanying downloaded documents unless expressly stated otherwise) is not intended or written to be used, and cannot be used, (i) for purposes of avoiding tax penalties that may be imposed on any taxpayer or (ii) for purposes of promoting, marketing or recommending to another party any tax transaction or matter addressed herein.