Make Your PA Taxes Work for GA

Frequently Asked Questions (FAQ) about the Special Purpose Entity (SPE) that contributes financial aid dollars to Germantown Academy (GA) in exchange for personal tax credit through the Educational Investment Tax Credit (EITC) program in Pennsylvania (PA).

HOW would you like to make a $10,000 gift to Germantown Academy BUT it only costs you $650? Well you can do just that and it is 100% possible through PA’s EITC Special Purpose Entity program.

WHAT is the EITC? Since 2001, the state has supported legislation that permits corporations, and now individuals, to donate money to private schools like GA and receive tax credit for up to 90% of the value of their donation. The Educational Investment Tax Credit (EITC) program provides donors who contribute to qualified private schools, like GA, credits for their donations that would otherwise be applied to corporate or personal state taxes.

A few GA parents, in 2018, started a Special Purpose Entity (SPE), or private company, called Friends of Education, LLC. Since then, the participant partners have pooled together over $2,000,000 for financial aid assistance at GA. Each donor received a state income tax credit in return for those gifts applicable towards their state income tax liabilities. The Friends of Education seek more partners who can participate and benefit with their own contributions AND increase financial aid support funding for GA.

WHO can participate as a SPE partner? Participants must have a Pennsylvania-source income. Individuals who work for companies that do not conduct business in the Commonwealth, or have income from out-of-state sources, should consult with a CPA.

WHEN can I start giving? Well, right now! Donors will be asked to complete an agreement joining the partnership Friends of Education LLC and commit to making a contribution of $6,000 or more to qualify for 90% Pennsylvania state income tax credit. Donors who commit to the program will be asked to make their donation each fall, within 60 days of official notice from the state.

WHY give this way when I already contribute to the Annual Fund? GA will always rely upon our generous community to support the Annual Fund to meet our operating needs each and every year. Contributions made through the EITC program are restricted in use - they MUST be used specifically to provide financial aid in the form of tuition support for some of our neediest student applicant families.

ANY MORE QUESTIONS??? Contact Martin Dean, Associate Director of Institutional Advancement, at 267-405-7458.

 

“I participated in the inaugural GA SPE tax credit program. My wife and I opted in because we were familiar with the tax program that provides a large benefit to GA at nominal cost to the participants. To me, the opportunity to participate is compelling, and I am committed to seeing the program grow in a meaningful way.”

Ira M. Brownstein P'28 '30