The Friends Collaborative

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The Friends Education Equity Collaborative Tax Credit Program for Individuals and Businesses

INCREASING ACCESS TO FRIENDS EDUCATION FOR MORE FAMILIES 

Media-Providence Friends School is one of the founding members of The Friends Education Equity Collaborative, a Special Purpose Entity LLC formed in 2016 to secure tax credits offered through Pennsylvania’s popular EITC and OSTC tax credit programs.

The EITC and OSTC programs were previously only open to corporate donors, but with the formation of organizations like The Collaborative, qualified individuals now have the opportunity to receive tax credits while supporting schools like MPFS.

The purpose of The Collaborative is to foster the growth of Quaker Education by providing funding that makes a Quaker education accessible for more families. The Collaborative is comprised of twenty Quaker schools and the Friends Council on Education. In just its first year, the Collaborative received over $2 million in gifts and pledges which have been used to support more than 100 students from 15 Quaker schools. We have grown to support children at 20 Friends schools across PA with over $4 million in financial aid. 

This is a game changer for some small Friends schools in our area, MPFS in particular. 

What's in it for me?

  • You have the ability to direct all or some of your PA state income tax liability to MPFS. Our school will, in turn, use your gift to provide critical financial aid to students in need.
  • You will receive a tax credit equal to 90% of your contribution to The Collaborative. In addition, you may be able to claim a federal income tax deduction. Together, these benefits make a large gift very inexpensive to make.


How does it work?*

  • Qualified individuals become members of The Collaborative.
  • You agree to make a set contribution to The Collaborative roughly equal to your anticipated state annual income taxes plus 10%, for two consecutive years.
  • You receive a tax credit each year for 90% of the amount of your contribution (which is roughly the amount of your anticipated taxes) $10,000 gift costs the donor less than $1,000 out-of-pocket. A $3,000 gift (the minimum required) costs less than $300 out-of-pocket.
  • On the receiving end, The Collaborative makes a gift of your funds to the Friends Council on Education, which distributes them to MPFS and other member schools. The Collaborative then sends you a tax form allocating the state income tax credits to you. Look here.
     

I am considering it for my business.

Great news! If your business has PA state tax liability over $3000, tax credits are available to your business as well.

Consider participating through The Collaborative and save applying to the state for credits. We've got that part covered and tax credits available for you to use. 

or

Participate with The Collaborative for additional PA tax liability not covered by your EITC - OSTC application to the state. More tax credits for your business!


Am I qualified to participate?

You may qualify if you have a PA Tax Liability of  at least $3,000 annually. 
 

I'm qualified. Whats next?

  • Please contact Cynthia McGoff, Development Director, at 610-565-1960, ext. 106, to discuss your involvement in an upcoming round of funding. Please note, The Collaborative seeks participants with a tax liability of $3,000 or more who are willing to participate for two years. 
  • The collaborative identified the following two people as points of contact to answer questions.
  • Friends Education Equity Collaborative c/o ABS
    PO Box 254 Oreland, PA 19075
  • thefriendscollaborative.org


Step by Step instructions on participating
Click here for an easy guide.

What does this look like for my donation? Example:

  • Donor’s PA Tax Liability $9,000
  • Invested Amount to Friends Collaborative $10,000
  • PA Tax Credit for that investment $9,000 (K1 for tax credits sent in March)
  • New Tax Liability $0
  • Out of Pocket Cost $1000
  • Federal Charitable Deduction $1000
  • If tax rate is 30% +\- net federal benefit is $300
  • $1000 out of pocket - $300 federal benefit = $700 net out of pocket cost.