• 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.

• 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.
• In March the year following your contribution you will receive a K-1. Use Schedule K-1 to report credits, deductions, etc., on your Form 1040 or 1040-SR. Keep it for your records. Don't file it with your tax return, unless instructed to do so by your tax professional.

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. 

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!

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

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

• 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, Assistant Head of School for Development, at 610-565-1960, ext. 106, to discuss your involvement in an upcoming round of funding or select a date to meet virtually below. Please note, The Collaborative seeks participants with a tax liability of $3,000 or more who are willing to participate for at least two years. 
• For More Information: Please refer to our website at thefriendscollaborative.org

• Contact the Executive Director of The Friends Collaborative: Alexandria Hansen, alex@thefriendscollaborative.org
   
• Contact one of the co‐clerks of The Friends Collaborative:

John Gilliland, john@thefriendscollaborative.org
Jeff Markovitz, jeff@thefriendscollaborative.org

What's the size of the scholarship gift I can make with PA Educational Improvement Tax Credits (EITC)? Use this calculator.

This tool is for informational purposes only and does not constitute tax or legal advice. Please consult your tax advisor for your specific tax situation.

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

Tax Credit Calculator - use to see what is possible.
*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.