Giving

Tax Credit Programs

Pennsylvania’s Educational Improvement and Opportunity Scholarship Tax Credit (EITC and OSTC) Programs

The Pennsylvania Educational Improvement Tax Credit and the Opportunity Scholarship Tax Credit Programs enable businesses and individuals to support need-based tuition assistance at Plymouth Meeting Friends School and also earn PA state tax credits and federal tax deductions for your contribution.

Contributions made through the Educational Improvement Tax Credit (EITC) provide tuition assistance to students living in low-income households who attend an eligible scholarship organization; PMFS is an approved school. Contributions made through the Opportunity Scholarship Tax Credit (OSTC) program support PMFS students from low-income households who live in neighborhoods with low-achieving public schools.

When an approved business or individual commits to participating in the program for two consecutive tax years, they may be eligible for a tax credit equal to 90% of the total contribution.

Contact Us for More Information

Natalie Coney, Director of Development
610.828.2288 x224 | nataliec@pmfs1780.org

Businesses

PA’s Educational Improvement Tax Credit program (EITC) provides companies with a 75% tax credit for donations to approved educational scholarship organizations. The tax credit increases to 90% if a company commits to making the same donation for two consecutive years.

Pennsylvania allocates tax credits for education programs each year on a first-come, first-served basis. To apply, businesses complete Pennsylvania’s online single-page application, available on July 1. Once applications are approved, contributions must be made within 60 days of receipt of state approval. Businesses make their donation to PMFS and receive a tax credit from the state.

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Who is Eligible to Participate?
The EITC program is available to businesses that file as S-Corporations, Partnerships, LLs or C-Corporations. Eligible taxes to which credits can be applied include:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Company Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
- Personal Income Tax of S Corporation shareholders
- Personal Income Tax of partners in general or limited partnerships
Benefits of Participating in EITC
Since its establishment in 2001, the EITC program has:
- Provided an easy way for the business community to be more involved in education
- Provided a lifeline to families who value the education at a nonpublic school for their child
- Allowed businesses to reduce their state tax burden and take a charitable giving deduction on federal taxes
- Provided means for need-based scholarships to reach students
- Provided the best possible return on investment: A child’s future has been changed.

Individuals

Qualified individuals can participate through The Friends Collaborative. Plymouth Meeting Friends School is a founding member of the Collaborative, a Special Purpose Entity LLC formed in 2016 to secure tax credits offered through Pennsylvania's EITC and OSTC tax credit programs, which now provides resources to more than 20 Friends Schools. 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 PMFS.

Qualified individuals will be asked to sign a joinder committing to participation and agree to make a set contribution to The Collaborative for two consecutive years. The Collaborative makes a gift of your funds to the Friends Council on Education, which distributes them to Plymouth Meeting Friends School and other member schools, and sends you a tax form allocating the state income tax credits to you. You will receive a tax credit each year for 90% of the amount of your contribution; in addition, you may be able to claim a federal income tax deduction for a portion of the contribution. Together, these benefits make a large gift to PMFS relatively inexpensive for an individual to make.

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.

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How do I qualify?
You may qualify if you meet the following criteria:
- Annual Income or Net Worth: One individual or spouse has an annual personal income of at least $200K, or the combined income of both spouses is at least $300K.
- Alternately, you have a net worth greater than $1M, exclusive of the value of your primary residence.
AND
PA Tax Liability: You have at least $3,000 in PA tax liability annually.
How does it work?
1. Qualified individuals become members of The Collaborative.
2. You agree to make a set contribution to The Collaborative ( up to your anticipated state annual income taxes plus 10%), for two consecutive years.
3. You receive a state tax credit each year for 90% of the amount of your contribution (which is roughly the amount of your anticipated taxes).
4. You take a charitable deduction from your federal taxes for the difference between your contribution to The Collaborative and the 90% tax credit you received (if you itemize your deductions).
5. On the receiving end, The Collaborative makes a gift of your funds to the Friends Council on Education, which distributes them to PMFS and other member schools. The Collaborative then sends you a tax form allocating the state income tax credits to you.