Newtown Friends School has been approved to participate in the Pennsylvania Educational Improvement Tax Credit and the Opportunity Scholarship Tax Credit Programs. The PA EITC and OSTC programs enable businesses to support need-based tuition assistance at Newtown Friends School and also receive a tax credit for your business contribution. If you are affiliated with a company that pays Pennsylvania taxes, EITC/OSTC provides tax credits of 75% of your business contribution, up to a maximum of $750,000 annually. A business that agrees to make a contribution for two consecutive tax years may receive a tax credit equal to 90% of its contribution. How Does It Work?Tax credits are available on a first-come, first-served basis. To apply, businesses should complete Pennsylvania’s online single-page application, available on July 1.
Renewal applications for donors who made a two-year commitment are accepted beginning on May 15.
Once your business is approved from the state, businesses have 60 days to make their contribution to Newtown Friends School. The School then will send an acknowledgement to the business for tax purposes.Who is Eligible?
Businesses authorized to do business in Pennsylvania who are subject to one or more of
the following taxes:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Personal Income Tax of S corporation shareholders or Partnership partners
- Insurance Premiums Tax
- Mutual Thrift Institution Tax
- Title Insurance Company Shares Tax
Support of the EITC and OSTC programs helps to ensure that more students have access to an NFS education. Thank you for your consideration. For additional information, please contact Diane Zimmaro
, Director of Advancement.The Friends Education Equity Collaborative
Newtown Friends School is a member of The Friends Education Equity Collaborative, a Special Purpose Entity (SPE) 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 Newtown Friends School.
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 nineteen 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. In December 2018 the Collaborative was granted an additional $3 million and we are working together to get these SPE's fully funded. This means that Friends schools in PA could have access to over $4 million for Quaker education.
What's in it for me?
You have the ability to direct all or some of your PA state income tax liability to Newtown Friends School. 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.)
On the receiving end, The Collaborative makes a gift of your funds to the Friends Council on Education, which distributes them to Newtown Friends School and other member schools. The Collaborative then sends you a tax form allocating the state income tax credits to you.
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.
PA Tax Liability: You have at least $3,000 in PA tax liability annually.
Please contact Diane Zimmaro, Director of Advancement, at firstname.lastname@example.org to discuss your participation in an upcoming round of funding. Thank you for your interest in supporting Quaker education and Newtown Friends School.