Foundation for Catholic Education PA Tax Credit Programs 2019-20 - PowerPoint PPT Presentation

Foundation for Catholic Education PA Tax Credit Programs 2019-20

MIS MISSION OF ON OF THE HE FOUND FOUNDATION ON ➢ Support and enhance Catholic Education in the Archdiocese of Philadelphia. ➢ Our goal is to leverage the EITC and OSTC programs, allowing us to maintain and increase the enrollment at all the Elementary and High Schools. ➢ To achieve our goal, the successful solicitation, communication and distribution of EITC and OSTC funding is critical to the Catholic Schools in the Archdiocese of Philadelphia.

The state te of Pennsyl nsylvania vania allow lows s PA tax payers rs to redir irect ect their ir liabil abilit ity y to your Ca Catholic olic School! ol! ➢ 2001 01 Tax Cred edit it Prog ogram am st starts ts in PA ➢ 120 0 Milli lion n in the progr gram am ➢ 49,000 ,000 sc schol olarsh arships ips are currently rently given ven ou out per year r in PA ➢ 52% % of applicants licants are denied ied due to progr gram am funding ing 3

Tax C ax Credit Pr edit Prog ograms ams: Funds : Funds Ava vaila ilable f ble for F or Families amilies EITC OSTC Educational Improvement Opportunity Scholarship Tax Credit Tax Credit ➢ 85 Million Available at the State ➢ 35 Million Available at the State ➢ Tuition Assistance K-12 ➢ Tuition Assistance K-12 ➢ Eligibility: $100,608 Maximum Income ➢ Students residing within a low achieving ➢ 15,608 for every additional child school district. A low achieving school is ➢ Family must apply through FACTS defines as ranking in the bottom 15% ➢ Same income requirement as EITC Family of 4: $116,216 ➢ Family must apply through FACTS Family of 5: 131,824 Family of 6: 147,432

Two W o Way ays t s to P o Par articipa ticipate! te! Individuals Businesses PA businesses can contribute up to Individuals with a tax liability $750,000 to the program. C-Corps, can now join a Special Purpose Entity S-Corps, LLCs and Limited (SPE) to take full advantage of the Partnerships are eligible to participate. PA EITC programs. ➢ Use the Credit for Your Personal PA Taxes ➢ Available to Those Who Do Business in PA ➢ Receive a 75% Credit for 1-Year ➢ 90% Tax Credit for a 2-Year Commitment Commitment or 90% Credit for 2-Years ➢ Currently Recruiting Members New Businesses Can Apply by July 1st ➢ $1,000 Minimum Contribution ➢ Designate to a Catholic School of ➢ Designate to a Catholic School of Your Your Choice Choice September 11, 2019

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What is SPE SPE 2019-20? 20? ➢ The SPE 2019-20 program , is an LLC that the Foundation has created to allow individuals to now participate in the EITC/OSTC programs. ➢ The sole purpose of the SPE is to: direct EITC/OSTC funds to families sending their children to our Catholic schools. ➢ The Catholic Education, LLC 2019-20 is made up of many individuals who want to support Catholic Education. ➢ The Foundation for Catholic Education will apply on July 1, 2019 for the SPE. ➢ SPE Members receive a 90% PA Tax Credit for a Two Year Commitment if approved by the State. 7

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SPE 2018-19 Scenario: 90% Tax Credit 9

SPE 2018-19 Sc Scenari rio (With thholding): 10

EI EITC / OST / OSTC / C / Other Other Dis Distr tribution ibutions s to S to School hools $3,500,000 $3,150,000 257% $3,000,000 Increase in One Year! $2,500,000 $2,000,000 Start of the SPE’s $1,500,000 $1,225,000 $1,125,000 $881,550 $1,000,000 $470,000 $547,000 $500,000 $185,000 $179,000 $0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

EITC and OSTC Programs: ➢ SPE # 1: Approved for $255,500 in OSTC ➢ SPE # 2: Received $655,215 in EITC ➢ SPE # 3: Received $833,300 in EITC ➢ SPE # 4: Received $755,117 in EITC ➢ Businesses: $500,000 in OSTC/EITC Total new EITC Committed $2.1 Million!

SPE 2019-20: Critical Dates May / Jun July October November Decemeber February Feb/Mar April / May June / July Receives 2019 PA Writes Check to Files tax return and Individuals Commits to SPE K-1 reflecting SPE SPE utilizes SPE credit tax credit Contribution to Applies to State 2018 Tax Return Notification of Foundation and SPE for Education Completed and SPE Credit Notification to Credits produces K-1's State State Awards SPE State State Educational acknowledges Credits SPE Contribution Distribution of Receipt of SPE tuition assistance Foundation Contribution Schools across the Archdiocese Receipt Tuition Allocations Tuition Schools Assistance from Assistance to Foundation Students/Families 13

Str Strate tegies gies f for or Sc Schoo hools ls to to Incr Increas ease EI e EITC Fun Funding ding ➢ Board Meeting Presentations ➢ Parent Nights ➢ EITC Breakfast Event ➢ EITC Weekend: April 28-29, 2019 ➢ EITC Lunch & Learn for CPAs and Financial Planners ➢ County-Wide EITC Receptions ➢ County Hall of Fame Galas ➢ Webinars

In Summary, by participating in the EITC / OSTC Programs you will… Receive a 90% PA Tax Credit WHILE providing Tuition Assistance to Catholic School families across the Archdiocese . Apply online: https://www.foundationforcatholiceducation.org/join-today 15

Contact Information Judi Neeld Director of Development Phone: 610.793.8503 E-mail: jneeld@foundationforcatholiceducation.org 16