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Types of Donations
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A donation to a
program of your choice
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An undesignated
donation that the Foundation Board will direct into the area
of highest need
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Memorial
contributions or endowments
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EITC Tax
Credits (*See below) The Ephrata Area
Education Foundation has received 501 (c) 3 tax
exempt status from the IRS and all donations are tax-deductible. For more information or to make a donation, please contact Mrs.
Stephanie Gingrich at:
Ephrata
Area Education Foundation
803 Oak Boulevard
Ephrata, PA 17522
(717)
721-1589
Foundation@easdpa.org
* Pennsylvania
Educational Improvement Tax Credit (EITC) The
Foundation has been approved for the 2008-2009 school year as an
approved organization under the Pennsylvania Educational Improvement Tax
Credit (EITC) Program. The Education Improvement
Tax Credit, signed into law by former Governor Tom Ridge, gives
tax credits to corporations that donate money to public school
improvement programs.
Pennsylvania companies that make a commitment to donate for
one year get a 75 percent tax credit and those who donate for
two years get a 90 percent tax credit, which can be applied to
whichever tax they chose. The credit can be applied to corporate
net income tax, capital stock franchise tax, the bank and trust
company shares tax, title insurance company shares tax,
insurance premiums tax and mutual thrift institutions tax.
Public corporations pay all these taxes and private companies
pay some corporate net income tax.
To apply, businesses must complete an application and agree
to make contributions only to state-approved scholarship
organizations or educational improvement organizations.
Visit www.newpa.com for more
details
Frequently Asked Questions (FAQ)
A Guide
for the Business Community
What are
Educational Improvement Tax Credits?
A
tax credit for businesses that makes a donation to an
educational improvement organization (i.e. a local education
foundation) to help implement programs not supported by the
school district budget.
What
businesses qualify?
Businesses authorized to do business in PA who are subject to
one or more of the following taxes: Corporate Net Income Tax;
Capital Stock Franchise Tax, Bank and Trust Company Shares Tax;
Title Insurance Companies Shares Tax; Title Insurance Companies
Shares Tax; Insurance Premiums Tax; Mutual Thrift Institution
Tax; or Personal Income Tax of S Corporation Shareholders, or
partners in a general or limited partnership.
How much
of a tax credit can I get for my business?
The tax credit is a 75% credit (against taxes owed). However, if
a company provides a written two-year commitment of equal
funding, the credit becomes 90%. In addition, existing
charitable deductions still apply with this credit, increasing
the benefits to the tax payer of the contribution. Eligible
companies may take up to $200,000 in tax credits per year.
What
organizations can businesses contribute to in order to receive
the credit?
Organizations
eligible to receive EITC contributions must be a recognized 501(c)(3) and use 80% of their annual receipts on approved
programs. Additionally, they must register with the Department
of Community and Economic Development (DCED) and be placed on a
list of eligible organizations.
How do
business know which organizations are listed?
They should check the
DCED Web site (www.newpa.com).
Search EITC and view the Educational Improvement
Organization List.
Can
Businesses contribute to more than one organization?
Yes. Businesses can donate to as many eligible organizations as
they choose.
What is
the process for businesses to receive the tax credit?
Business will apply to DCED for the tax credit. If the
organization is listed with the department and there is money
available in the program, tax credits will be awarded on a
first-come, first served basis. (There is $59 million dollar
annual cap on the program.) Applications may be submitted
beginning on the first day of the State’s fiscal year, which is
July 1 annually.
After notification of
approval, business must make their contributions within 60 days.
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