Tax Credit Giving
As a private, nonprofit school in Pennsylvania, Delaware County Christian School is eligible to participate in the state’s Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs. EITC and OSTC are donor-friendly ways to support DC’s financial aid program, which ensures that our student body is talented and diverse while keeping tuition reasonable and affordable, all in the service of our mission to educate students who will serve God and impact the world through Biblical thought and action.
Pennsylvania’s EITC program enables individuals and corporations to reduce their tax liability by up to 90% while supporting the financial aid program at the private school of their choice. To qualify for a tax credit, individuals must:
- Own, work for, or own stock in a Pennsylvania business. (If you do not own or work for a PA business, purchasing a single stock in a PA company is an easy and cost-effective way to qualify.)
- Have a state income tax liability of at least $3,500
Take a look at the following table to consider where your EITC donation is going (to DC), in contrast to where it would have gone otherwise (to Harrisburg and Washington, D.C.):
|Your $10,000 Donation|
|PA Tax Credit||$9,000|
|Federal Tax Deduction||$350|
|Cost to You||$650|
In short, by giving $10,000 through DC’s EITC program, your out-of-pocket cost is $650 and DC receives the full $10,000. It’s a true win-win.
How to Participate:
Per EITC guidelines, qualified individuals must join or create a Special Purpose Entity (SPE) to participate in the program. To facilitate this process, Delaware County Christian School partners with the Central Pennsylvania Scholarship Fund (CPSF), a choice that we made in part because CPSF does not charge any administrative fees, ensuring that DC receives 100% of your contribution. However, we do accept donations from other scholarship funds as well at the donor’s discretion.
To participate in the program, individuals must first sign a joinder, which is a one-page document that allows a donor to join an SPE. This joinder reserves your tax credit for the current year in the amount and to the school of your choosing. Once completed, DC will also process your application and submit it to CPSF.
Later in the year, you will receive an award letter from the PA Department of Community & Economic Development (DCED), which notifies you about the deadline for writing your donation check—typically within a 60-day window from receipt—to be made out to CPSF. Then, in early February, you will be mailed a federal and state K-1 tax form to be used when you file your taxes. Your refund check will arrive in July.
If you are interested in participating in DC’s EITC program, contact DC’s Director of Development, Carter Skeel, at firstname.lastname@example.org or 610-353-6522 x2212.