By directing your PA state income tax to MPFS through The Collaborative:

• Control where your tax dollars go
• Support critical financial aid for students in need
• Receive a 90% tax credit on your contribution
• Potentially claim a federal income tax deduction

These benefits make a significant gift highly cost-effective.

Here's how The Friends Collaborative (TFC) works:

1. Join TFC and commit to contributing for two consecutive years
2. Contribute an amount roughly equal to your anticipated state annual taxes plus 10%
3. Receive a 90% tax credit on your contribution each year
4. TFC distributes funds to Friends Council on Education, which allocates to member schools
5. Receive a K-1 form in March the year following your contribution for tax credit reporting

Example costs:

• $10,000 gift: Less than $1,000 out-of-pocket
• $3,000 gift (minimum): Less than $300 out-of-pocket

This program makes significant gifts highly cost-effective while supporting Friends schools

Yes, businesses can benefit from tax credits through The Friends Collaborative (TFC):

• Available for businesses with PA state tax liability over $3,000
• No need to apply directly through the state
• TFC handles application and reporting processes
• Tax credits can be used to offset your business's PA tax liability

For businesses already participating in EITC or OSTC:

• Use TFC to cover additional PA tax liability not addressed by state applications
• Maximize your tax credits while supporting education

Contact Cynthia McGoff to explore how your business can participate and potentially increase its tax savings.

Taxes eligible for EITC, OSTC and PKTC credits include:

• Personal PA income tax of employees, shareholders, or partners of corporations or partnerships
• Pennsylvania Corporate Net Income Tax
• Capital stock / franchise tax
• Bank and trust company shares tax
• Title insurance companies shares tax
• Insurance premiums tax
• Mutual thrift institutions tax 
• Malt Beverage Tax
• Surplus Lines Tax

You qualify if you have a PA Tax Liability of at least $3,000 annually, with at least one spouse either employed at a for-profit company or holding an ownership interest in a Pennsylvania for-profit business.

Tax credit participation is first-come, first-served. If current credits are unavailable, you can join the waitlist for the next funding round.Key Requirements:

• Minimum PA tax liability of $3,000
• Commitment to participate for two consecutive years

Contact Cynthia McGoff to:

• Discuss upcoming funding rounds
• Schedule a virtual meeting
• Explore program participation

Call: 610-565-1960, ext. 106

Step by Step instructions on participating
All participation forms are online. Click here for an easy guide.

MPFS is a founding member of TFC, a Special Purpose Entity LLC established in 2016 to secure tax credits through Pennsylvania’s Educational Improvement Tax Credit (EITC) program. Originally open only to businesses, EITC now allows individuals to receive tax credits while supporting schools like MPFS. TFC’s mission is to expand access to Quaker education by funding financial aid. Partnering with Friends schools and the Friends Council on Education, TFC has grown to support students at 22 schools. Since its launch, MPFS has received $1,401,851 in financial aid through TFC, making it a vital part of our financial aid program.

Pennsylvania's Department of Community and Economic Development (DCED) manages various programs to support business and community growth, including the Educational Improvement Tax Credit (EITC) program. The EITC encourages companies and individuals to redirect their state tax dollars to contribute to need-based scholarships.

Key points about the EITC program:

1. The program has a fixed annual budget contingent upon the overall DCED budget and the specific amount allocated by the state for this program’s purpose; the program does not have unlimited funds.
2. The Friends Collaborative’s participation in this program does not affect the budget for this program. If The Friends Collaborative doesn't utilize the available tax credits, other eligible organizations or businesses will claim them, potentially leaving scholarship money unused for students at Friends schools.
3. EITC operates within DCED's budget, which is entirely separate from the Department of Education's budget for funding public schools; the two budgets operate independently of each other.
4. EITC-awarded scholarships do not negatively impact public school funding; they are funded through a distinct allocation.

The Friends Collaborative strongly supports public education and is confident that EITC does not conflict with public school funding.  

Overall, The Friends Collaborative is supportive of all forms of educational instruction and their importance in supporting children and families.  As Quaker institutions, our approach to the concept and need for education is rooted in the core Quaker principles of equality, inclusion, unity, and community.  We believe that providing education can create communities in a climate of equality and respect.  As such, we endorse the crux of education and its essential role in community growth.  Quintessentially, education is for all, and to satisfy the diverse needs of all individuals in our Commonwealth and provide the grounds for desired optimal growth, a dynamic and equitable educational ecosystem encompassing a collective network of various branches of education is fundamental.  As such, each branch of the ecosystem, each form of academic instruction (i.e., independent Quaker education, public education, etc.),  must be categorically and equitably sustained and supported, as each plays a crucial and consequential role in driving communities forward.