Indiana Tax Credit Scholarship Program
The Indiana Tax Credit Scholarship Program opened July 1, 2018 with $14 million! The Office of Catholic Schools is gratified by the tremendous support of generous donors this past year. In 2017, over $6M was raised which enabled approximately 2,200 students to attend Catholic Schools.
Act now to make your gift and receive the 50% tax credit! It’s easy to do.
Donations must be directed to the Institute for Quality Education (IQE) in order to receive the tax credit. To learn more about the tax credit scholarship program and how to donate, visit http://www.i4qed.org/sgo. Or visit Immaculate Heart of Mary’s page to donate directly to IHM https://sgo.i4qed.org/schools/118/landing . Questions should be directed to Kim Pohovey, Director of Mission Advancement for Catholic Education Initiatives, Office of Stewardship and Development, Archdiocese of Indianapolis at 317-236-1568 or firstname.lastname@example.org.
As you know, the biggest benefit of an SGO contribution is the 50% Indiana state tax credit. That has not changed. All donations to an SGO for the tax credit scholarship program continue to qualify for a 50% state tax credit as long as credits remain available.
In addition, donors are eligible to take a federal tax deduction for that gift.
On Friday, August 23, the IRS proposed regulations that would limit the amount of federal tax deduction one can claim on their federal tax return. If enacted, the proposed regulations will apply to contributions made after August 27, 2018. In very simplistic terms, the proposed rule requires that the amount on which a taxpayer can receive a federal deduction is the gift amount less the state tax credit benefit. For example, a $10,000 donation would receive a $5,000 state tax credit and then $5000 would be eligible to claim for a federal deduction. If you were in the 35% tax bracket that deduction could be as much as $1750 in additional federal tax benefit to you. ($5000 *0.35 = $1750).
To recap, regardless of the date you donate, donors still receive a 50% Indiana state tax credit, and will also receive a federal tax deduction, however, the amount of the federal deduction may be limited by these proposed regulations.
Please advise your donors to call their accountants or tax advisors to make sure they are maximizing the benefits of their SGO contribution.
Donating today or in the future, gifts are helping to make tuition more affordable for families, and for that we are most grateful. Attached is a donor brochure you can use for your fundraising endeavors.
We appreciate our partnership with you and as always please let us know how we can help you.