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.
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?*
- 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 with none of the hassle to apply through the state.
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.
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!
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
Am I qualified to participate?
You may qualify if you have a PA Tax Liability of at least $3,000 annually.
I'm qualified. What's next?
- When credits are available, participation in this program is on a first come first serve basis. If no credits are immediately available you can join a waitlist to queue up for the next round. 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.
- Via USPS: Friends Collaborative c/o ABS P.O. Box 254 Oreland PA 19075 Attn: Jeff Markovitz
- For UPS/FEDX/Hand delivery: Friends Collaborative c/o ABS 7157 Camp Hill Road Fort Washington PA 19075
Step by Step instructions on participating
Click here for an easy guide.
2020 BASIC MATH EXAMPLE
PA Taxable Income $ 293,160
PA Tax Owed $ 9,000
Participation Amount $ 10,000
PA Tax Credit (90%) ($ 9,000 )
Cost to Participant $ 1,000
Charitable deduction* ($ 330 )
Net Cost $ 670
*Charitable deduction savings are on additional amount donated over PA credit received and are for illustration only. Assumes an effective Federal tax rate of 33%. Please consult your tax professionals for specific tax treatment advice.