Tax Credit Program To Support FSS
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Anyone paying at least $3,500 in PA state taxes can reallocate 100% of these tax dollars to support financial aid for Friends Select students. The Central Pennsylvania Scholarship Fund currently has approved tax credits from Special Purpose Entities (SPEs), which are available to qualified individuals and businesses. To take advantage of this opportunity, you should claim these tax credits as soon as possible!
The Process
- Contact Mallory Burgan, Friends Select Director of Leadership Giving and Advancement Services (malloryb@friends-select.org or 215.561.5900, ext. 3131).
- Sign a pledge form as soon as possible to reserve your tax credits.
- Send a check in November in the amount of your contribution to the SPE, which will forward the funds to Friends Select’s financial aid program.
- Check your mail for a thank-you letter in January, followed by a K-1 form (PA 1123) for a tax credit that should be filed with your taxes.
- Receive a credit of 90% of your contribution after filing your PA state taxes, and claim the other 10% as a charitable contribution when filing your federal taxes.
The chart below is an example of how these tax credits can help both you and Friends Select School:
PA State Taxes of Donor |
$ 10,000 |
SPE Contribution |
$ 10,000 |
90% PA State Tax Credit 90% |
$ 9,000 |
Fed. Charitable Deduction 10% |
$ 1,000 |
Total Tax Savings |
$ 9,000 |
For more information about the Central Pennsylvania Scholarship Fund, contact Jeff Wilson (jeff@fundedullc.com or 814.283.4338).
FAQs
- Is there an upfront cost?
- What are Special Purpose Entities (SPEs)?
- Who is this program available to?
- Will my entire contribution directly support financial aid at Friends Select?
- Should I fill out the joinder in full, even if I am uncertain about the amount that I will be paying in PA state taxes?
- Can I adjust the amount listed on my joinder once a new calendar year begins?
- Is the other 10% of my contribution tax deductible?