Tax Credit Scholarship Information for Donors
IMPORTANT NEWS: There is currently a Donor Matching Gift Program that offers 2-for-1 matching gift for donations to the tax credit scholarships for next year (2019/2020 school year). The program is only applicable for donations made via Empower Illinois from Dec. 1, 2018 through Feb. 28, 2019 or when the matching funds are depleted.
The new Invest in Kids tax credit scholarship (TCS) program allows you to make a gift of scholarships for in-need Catholic school students and receive 75 percent of that gift returned to you as an Illinois state income tax credit. As we approach the end of the calendar year, this is a powerful way to support low-income students while earning a significant income tax benefit.
And there has never been a better time to take advantage of the TCS program. For a limited time, a group of generous donors has created a two-to-one matching gift program, which means that for every dollar you donate to Empower Illinois two more dollars will be donated to the scholarship fund and designated to our school. A matching fund pool will be available for new donations made to any of the more than 160 schools operated by the Archdiocese of Chicago.
Now, when you make a gift to the tax credit scholarship program, you can:
What is the process for donating?Beginning on January 2, 2018, individual and corporate donors will be able to reserve tax credits through mytax.illinois.gov by following these steps:
- Help a student in need achieve a life-changing Catholic school education;
- Receive an Illinois state tax credit for 75 percent of your donation;
- Triple the impact of your gift through the matching gift program!
Interested in donating?We welcome your support of this Scholarship Fund as a way to make a St. Therese Chinese Catholic School education more affordable for many of our families. Note that the process allows you to designate your donation to be in support of families applying for scholarships to attend St. Therese, so you know your donation will be put to good use.For more information about this process, please contact us at email@example.com or 312.534.2617 to speak with the Tax Credit Scholarship Office at the archdiocese.What are tax credit scholarships?The Illinois Tax Credit Scholarship Program, “Invest in Kids,” provides a 75 percent Illinois state income tax credit to individuals and corporations that contribute money to a non-profit Scholarship Granting Organization (SGO). The SGOs award scholarships to eligible students from low-income families. Donors will use money already owed to the state (taxes) and donate it to a needs-based scholarships instead, all while receiving a 75 percent state tax credit.Through this program:
- Set up an account at mytax.illinois.gov. This site will have the credit application on January 2.
- Apply for a tax credit on mytax.illinois.gov as soon as the application is open on the website. Donors will need to provide at least the following information (a complete list will be provided once available):
- Social Security Number
- Personal (or company) name and contact information
- Name of SGO to which he/she plans to donate (Note: The SGO of choice for the Archdiocese is Empower Illinois)
- Amount he/she plans to donate
- Region to which he/she plans to donate
- Donate to an SGO within 60 days of application being approved (Note: The SGO of choice for the Archdiocese is Empower Illinois).
- Designate the donation to St. Therese Chinese Catholic School
- Provide certificate from the SGO to use tax credit when filing a 2018 return in 2019.
- An individual or corporation will receive a 75 percent credit on donations to an SGO. For example, if a person donates $10,000, they will receive a state tax credit of $7,500.
- Individual donors can designate their donations to Archdiocese of Chicago Catholic Schools.
- The credit can be rolled over for five years.
- Donors are prohibited from receiving a federal tax deduction for these donations.
- The program is capped at $100 million in donations, resulting in $75 million in total tax credits issued.