Support the Private School of Your Choice
Friends of Education LLC is seeking participants for the 2023 tax year. Act now to redirect you tax dollars to support the private school of your choice.
How can I choose where to spend my tax dollars?
The Educational Improvement Tax Credit (“EITC”) program issues state tax credits to individuals and businesses who make donations to private schools. The tax credits equal 90 percent of the contribution if claimed for two consecutive years.
To participate in this program, Pennsylvania’s EITC law requires that a participating individual contributes to a Special Purpose Entity (“SPE”). The SPE then distributes the funds to the private school of the participant’s choice.
Friends of Education makes it easy for you!
Individuals can give money to the private schools of their choice in the state’s K-12 Scholarship EITC program.
Friends of Education manages several SPEs with K-12 EITC credits. The process is very easy. Here is an example of how this works:
The Smith family earns $300,000. Their marginal federal tax rate is 25% and they itemize on their state tax returns. They also pay $9,210 in Pennsylvania state income tax. The Smith family joins Friends of Education and makes a $10,000 donation to support the private school of their choice. Friends of Education LLC writes a check for $10,000 to that private school. The Smith family receives a state income tax credit of $9,000. The Smith family reduces its total Pennsylvania tax liability from $9,210 to $210. The Smith family also receives a charitable contribution deduction on the remaining $1,000, so they can deduct $250 from their federal return.
Below is a chart illustrating the difference if the Smith family made a charitable donation directly to a qualified organization without using the EITC Program.
Charitable donation directly to a private school | EITC contribution to a private school
| |
| Donation | $10,000 | $10,000 |
| State Tax Credit | $0 | $9,000 |
| Charitable contribution deduction on Federal return | $2,500 | $250 |
| Total out of pocket cost | $7,500 | $750 |
Using the EITC program, it costs the Smith family $750 to make a $10,000 donation to the private school.
Instead of paying the Pennsylvania Treasury, the Smith family gets to redirect their tax payment to the private school of their choice.
The K-12 Scholarship EITC program allows individuals to redirect their tax liability for very little additional cost. Every participant’s tax situation is different, so participants should consult with a tax professional before committing to the program.
Participation in the program is limited. Credits are awarded on a first-come, first-served basis. If a spot is unavailable, you can join our waiting list.