Your State Taxes Can Fund Scholarships
Whether you’re an individual donor or a business owner, you can use your state taxes to help fund scholarships for children who would love access to a DHCA education. Keep reading for more information. You may also contact Lisa Barnett, Advancement Director, at email@example.com, for more information.
INDIVIDUAL DONORS! You can use a portion of your tax liability to provide tuition assistance to students who have demonstrated financial need. You’re not just giving a scholarship, you’re getting a tax credit. By redirecting a portion of your tax liability to a Scholarship Granting Organization (SGO), you reduce the total amount of your tax bill by 50%. You have an opportunity to give a child access to a DHCA education who could not otherwise receive at no cost to you. So the question isn’t “why,” but rather, “why not?”
Individuals who contribute to Scholarships for Kids can also redirect up to 50% of their Alabama state tax liability. The annual maximum tax credit available on an individual tax return is $50,000.
Corporate contributors can redirect up to 50% of their TOTAL tax liability. There is no maximum limit for the tax credit.
BUSINESS OWNERS! This is a great opportunity for you too. A business that contributes to Scholarships for Kids not only receives the dollar for dollar tax credit, but you can also deduct it as a business expense on the federal side. This means that your business will essentially make money by giving to SFK!
Check out the handouts below for more information, but as an example: the donor who contributes $8,000 makes almost $1,500.
Check out the helpful resources below explaining these things in greater detail.