Give a Child the Gift of an Eden Education PA EDUCATION TAX CREDIT PROGRAMS Educational Improvement Tax Credit Program (EITC) Opportunity Scholarship Tax Credit Program (OSTC)
Table of Contents Tax Credit Impact
Page 2
PA Education Tax Credit Programs
Pages 3-4
How to Get Involved
Pages 5-6
FAQs
Pages 7-9
Be the Difference
Page 10
“Render therefore unto Caesar the things which are Caesar’s; and unto God the things that are God’s.” (Matthew 22:21)
Helpful Terms to Know
SO — Scholarship Organization that processes contributions and scholarship distributions. May also be referred to as an SGO (Scholarship Granting Organization). SPE — Special Purpose Entity that allows pass-through business participation in some cases. EITC — Pennsylvania Educational Improvement Tax Credit Program. OSTC — Opportunity Scholarship Tax Credit Program.
Joinder — A donor participation form used by some organizations.
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PA education tax credit participation is one of the most meaningful ways to expand access to Eden Christian Academy. By turning taxes you already owe into life-changing tuition assistance, you help make an Eden education possible for more families.
Impact of Education Tax Credit Programs on Financial Aid at Eden Scale of Impact
Essential Support
Lives Changed
“Receiving financial aid from the generous supporters of Eden has enabled my son to be a graduating senior this year! [...] I have peace of mind every day. I am crying as I type this.” — The Young Family
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PA EDUCATION TAX CREDIT PROGRAMS PA offers educational tax credit programs through the Department of Economic and Community Development (DCED). These tax credit incentives allow individuals and businesses to redirect their PA tax dollars to invest in the education of students who demonstrate financial need. Eden—and schools like ours—don’t receive tax credit contributions directly. Instead, we work with trusted partners called Scholarship Organizations (SOs), also commonly referred to as Scholarship Granting Organizations (SGOs). These organizations apply for tax credits on behalf of donors and help guide them through the process. Individuals often participate through a Special Purpose Entity (SPE), which is managed through an SO. The SPE allows eligible individuals to participate in the tax credit program through a simple joinder process. Once a donor is approved and makes their contribution, the SO distributes those funds to support students at Eden. Two Ways to Support Eden Through PA Tax Credits Educational Improvement Tax Credit Program (EITC) Through the EITC program, eligible businesses and individuals may redirect a significant portion of their Pennsylvania taxes through approved SOs to support need-based tuition assistance for students attending eligible pre-K through Grade 12 schools, including Eden Christian Academy. Opportunity Scholarship Tax Credit Program (OSTC) Like EITC, OSTC allows eligible donors to redirect a portion of their Pennsylvania taxes through approved SOs to support need-based tuition assistance for eligible K through Grade 12 students. OSTC funds are reserved for students who reside in the attendance area of PA’s lowest-performing public schools and choose to attend another eligible school, such as Eden Christian Academy.
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PA EDUCATION TAX CREDIT PROGRAMS Qualifications to Participate: Essentially all individuals and businesses with Pennsylvania state tax liability are eligible to participate. Benefits: Through Pennsylvania’s education tax credit programs, businesses and individuals can redirect a portion of their state tax liability to support scholarships and receive a 90% PA state tax credit on their contribution. As a result, a $10,000 gift may cost as little as $1,000 after credits while making a lasting impact for students and families. Individual donors who itemize federal income taxes may also be eligible to claim a charitable deduction for the portion of their contribution not offset by the PA tax credit, potentially reducing the net cost of their gift even further. We are happy to help you explore options that may maximize this benefit. How to Participate: Individuals participate by applying through an SO, which manages the application and tax credit process on their behalf. For simplicity and ease of process, businesses are strongly encouraged to apply through an SO. However, they may also apply directly through the DCED.
This information is not intended to serve as legal or tax advice. Please consult your financial or tax advisor.
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How to Get Involved T
Individuals and many businesses choose this simple route th partners, who guide participants through the Special Purpose apply directly through DCED. Learn more at www.edench
1. COMPLETE A SIMPLE FORM: (Special Purpose Entity Joinder Agreement): Complete a simple, one-page application (called a “joinder”) through an SO of your choice to support Eden Christian Academy. We are happy to guide you through this process. 2. MAKE YOUR CONTRIBUTION: The SO will notify you once your joinder has been approved and will provide instructions for making your contribution. After your gift is received, funds are distributed to support need-based tuition assistance at Eden. Timing can vary— some applications are approved quickly, while others may take several months depending on when you apply. 3. RECEIVE TAX CREDIT FORMS (Typically Early Spring): Once approved, your SO partner handles the SPE process, secures your tax credits through the DCED, and provides the forms or documentation needed to claim your credits. Timing may vary based on participation method and tax situation.
5.
Through a Trusted SO
hrough one of Eden’s trusted Scholarship Organization (SO) e Entity (SPE) process. Some businesses may also choose to hristianacademy.org/support/tax-credit-programs.cfm
4. FILE YOUR TAXES: When filing your PA tax return, you can apply your credit to reduce your state tax liability. If you’ve already paid taxes, you may receive a refund. If not, your credit will reduce what you owe. Unused credits may generally be carried forward to future tax years. For the smoothest experience, we encourage donors to consult their tax advisor and file promptly, as processing timelines can vary. 5. RECEIVE TAX BENEFITS (Typically Mid-Summer to Fall): Donors who itemize deductions may also receive a federal tax benefit. For example, a $10,000 contribution may generate a 90% PA tax credit ($9,000). The remaining $1,000 may be deductible as a charitable contribution. Federal tax benefits vary based on individual circumstances—please consult your tax advisor.
This information is not intended to serve as legal or tax advice. Please consult your financial or tax advisor.
6.
Frequently Asked Questions The following FAQs are provided as a general guide to help you explore participation. Because individual tax situations vary, we encourage you to consult your tax or financial advisor for guidance specific to your circumstances. Q. Do I need to figure this out on my own? A. Not at all! We’ll connect you with one of our trusted partner Scholarship Organizations (SOs) who will walk you through the process and help you with any details and questions. Q. Do I need to earn a particular income to qualify? A. Eligibility is based on your PA state tax liability—not your income— so each situation will vary. Many participants qualify, and contributions can start as low as $500. Q. Is there a maximum I can contribute? A. There is no set maximum contribution, but tax credits are limited based on your PA tax liability and program guidelines. Q. What happens if I’m not approved after I submit my application (“joinder”)? A. The vast majority of donors are approved. However, because DCED limits tax credits, they are not guaranteed. You are not obligated to make a contribution if credits are not available. In the unlikely event that this were to occur, your SO will let you know. Q. If my taxes are already withheld from my paychecks, can I still contribute? A. Yes. Tax credits are tied to tax liability, not how your taxes are paid. The credit is applied when filing your PA return and may reduce taxes owed or increase your refund, depending on your individual tax situation. Q. If I (or my business) make quarterly estimated tax payments, can I still participate? A. Yes. Tax credits are tied to tax liability, not how taxes are paid. Individuals and businesses that make quarterly estimated payments may still be eligible to participate. Depending on your situation, the credit may reduce taxes owed or affect future payments. Please consult your tax advisor.
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Q. What is the timeline to contribute? A. Individuals and businesses who choose to work with one of our trusted SO partners can generally begin the process at any time during the calendar year. Applications are typically processed in fall and spring cycles, depending on the SO. If submitted outside of these windows, applications are reviewed in the next available cycle. For businesses who wish to apply for credits themselves through DCED, application deadlines are set by the state and are typically May 15 for returning participants and July 1 for first-time participants. Q. Can these credits be used on both individual and joint income tax returns? A. Yes. Eligible individuals and couples filing jointly may participate. Eligibility is based on your PA state tax liability, and the credit is applied to your PA tax return. Q. Can I direct my contribution to support a specific student at Eden? A. Because of program guidelines set by the DCED, contributions cannot be directed to a specific student. Instead, they support need-based tuition assistance at Eden, helping more families access a Christ-centered education. Q. Who actually receives my contribution? A. Your contribution is made through an SO and is then distributed to Eden to support need-based tuition assistance. Tuition assistance awards are reviewed through Eden’s established financial aid process, with assistance allocated based on demonstrated need and available funding. Q. What if I complete my application or indicate an intended contribution, but my financial circumstances later change? A. We understand that financial circumstances can change unexpectedly. If that happens, simply contact your SO partner to let them know. They can update your participation accordingly and answer any questions you may have.
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Q. I’ve heard donors must participate for two years to receive the higher Pennsylvania tax credit. Why do some SOs allow a one-year contribution? A. Under Pennsylvania’s EITC program, the higher credit percentage is associated with two-year participation. Some SOs structure their programs so they manage the multi-year commitment at the organizational level rather than requiring each donor to personally commit for two years. This may allow a donor to make a one-year contribution while the SO works to maintain overall program commitments through continued donor participation and future funding. Because policies can vary, donors should confirm current procedures with their chosen SO and consult their tax advisor regarding individual circumstances. Q. When can I participate in the program? A. Donors may submit a joinder or indicate interest throughout the year. SOs typically process contributions and distributions during established funding windows, most commonly in fall and spring cycles. Exact timelines, deadlines, and processing dates can vary somewhat by organization each year. If you are considering participation, we encourage starting early so there is ample time to select the best SO for your circumstances and goals and complete any required steps.
“Financial aid has been a blessing… without it, my son would not have been able to attend Eden for as long as he has.” — A Grateful Eden Family
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BE THE DIFFERENCE Your participation in education tax credit programs provide need-based tuition assistance to Eden students so we can continue to offer a quality, faith-based education. Christ-centered education Rigorous college-preparatory curriculum STEAM education Service projects & community outreach Arts & athletics programs
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Contact Eden to Get Started Jamie Lee Korns, EdD Director of Advancement jkorns@edenca.org 412-364-8055 x 126
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OUR MISSION Eden Christian Academy is committed to providing an exceptional educational experience by engaging the mind and heart of each student to think and to act with Christ-like character.
Contact Eden to Get Started Jamie Lee Korns, EdD Director of Advancement jkorns@edenca.org 412-364-8055 x 126
Every Student. Every Gift. Eternal Impact. BERKELEY HILLS CAMPUS 206 Siebert Road Pittsburgh, PA 15237 412.364.8055
WEXFORD CAMPUS 12121 Perry Highway Wexford, PA 15090 724.935.9301
MT. NEBO CAMPUS 318 Nicholson Road Sewickley, PA 15143 412.324.1100
www.EdenChristianAcademy.org