The SGO Scholarship Fund provides donors with a 50% Indiana state tax credit, as well as a federal deduction depending on your tax bracket.
WHAT IS AN SGO?
”SGO” stands for a “Scholarship Granting Organization” that provides scholarships to low- and middle-income families to help them afford the school of their choice. SGOs were enacted in 2009, but were expanded as part of the 2011 Choice Bill that features the 50% state tax credit for contributions made to these SGOs. The funds donated can then be distributed for families that meet the income and other requirements. SGO Scholarships are funded by charitable donations, not the state.
The Crossing has partnered with both the Community Foundation of Elkhart County and the Institute for Quality Education, both approved SGO’s, to provide scholarships for private pay students. This is very exciting as it allows the Crossing to enroll any student that walks through the door.
In addition, by receiving an SGO scholarship in the current school year students will then become eligible to qualify for a voucher, paid by the state, in the following school year. Vouchers average around $5,500 per year for qualifying students. This means that these students will not need an SGO scholarship, thus SGO funds raised in the subsequent year can go to help provide scholarships for other students in need.
As an example, a donation of $10,000 to our SGO by a donor in a 25% tax bracket could result in a $5,000 tax credit from your Indiana state tax due, potential of $1,750 (35%) from your federal tax due, and knowing that YOU generated scholarships for struggling students to become empowered through academics, job-training, and faith-based mentoring.
INDIANA STATE TAX CREDIT
(Based on a $10,000 gift)
WITH TAX CREDIT
WITHOUT TAX CREDIT
Out of Pocket
*See your tax professional for your specific Federal tax credit amount.
I have a few questions…
HOW DO I DONATE TO YOUR SGO?
[expand title=”read more”]There are multiple ways to make a contribution:
When giving to a campus NORTH of Anderson, IN:
- If you are giving by check, please complete this donor card and make checks payable to the Community Foundation of Elkhart County with “The Crossing” written on the memo line. Checks and donor card need to be mailed together to P.O. Box 2932, Elkhart IN 46515.
- If you are giving by credit card, contributions can be made online at inspiringgood.org.
When giving to a campus SOUTH of Anderson, IN (including the Anderson campus):
- If you are giving by check, please complete this donor card and make checks payable to the Institute for Quality Education with “The Crossing” written on the memo line. Checks and donor card need to be mailed together to 101 W. Ohio Street, Ste. 700, Indianapolis, IN 46204.
- If you are giving by credit card, contributions can be made online at www.indianataxcreditscholarships.org.
- Contact our Finance Department at the Crossing and they will walk you through the process if necessary: 574-226-0671 or firstname.lastname@example.org
WHAT IS THE DIFFERENCE BETWEEN A TAX DEDUCTION AND A TAX CREDIT?
[expand title=”read more”]Unlike a tax deduction, where your charitable donation can be removed from your taxable income, a credit can directly reduce your tax liability “off the bottom line”.[/expand]
WHO CAN QUALIFY FOR THE TAX CREDIT?
[expand title=”read more”]Corporations, partnerships, LLCs, PCs, self-employed, or individual taxpayers are eligible for the Tax Credit; in fact, any entity with an Indiana state tax liability can receive the benefit from a donation to our SGO.[/expand]
IS THERE A CAP OR LIMIT TO SGO DONATIONS AND THE TAX CREDIT?
[expand title=”read more”]There is an $12.5 million cap on available state tax credits for up to $25 million in donations across the state for 2017. The minimum donation per entity or individual is $100. Think of the process as a “first donations in, first tax credits awarded” process.[/expand]
CAN I STILL TAKE MY SGO GIFT AS A DEDUCTION ON MY FEDERAL TAXES?
[expand title=”read more”]Yes, your gift to our SGO is tax-deductible to the full extent of the charitable laws.[/expand]
CAN I DONATE STOCK?
[expand title=”read more”]Yes, a stock gift can be made.
When giving to a campus NORTH of Anderson, IN, please contact the Community Foundation of Elkhart County at (574) 295-8761.
When giving to a campus SOUTH of Anderson, IN (including the Anderson campus), please contact the Institute for Quality Education at (317) 951-8783.[/expand]
CAN I DIRECT MY GIFT TO A SPECIFIC STUDENT?
[expand title=”read more”]Donors cannot receive the tax incentives from designating their SGO gifts to benefit a specific student.[/expand]
WHY GIVE TO THE SGO?
[expand title=”read more”]
- 50% State Tax Credit
- Up to 40% Federal Deduction based on tax bracket
- $500 scholarship makes student eligible to receive a voucher the following school year worth approximately $5,500!
- Your donation to the SGO supports your local campus
IS THERE A LIMIT TO THE SIZE OF TAX CREDIT I COULD RECEIVE?
[expand title=”read more”]You can reduce or eliminate up to the full amount you have paid or will owe the state. If already paid, you can receive a refund up to what you have already paid. Should you be due more credit than you can use, you may rollover the remaining credits for an additional eight years. Additionally, if you pay quarterly estimated taxes, you could couple an SGO donation with a reduced quarterly payment to the state. Please consult your own tax advisers for your own, unique situation.[/expand]
WHAT IS THE DIFFERENCE BETWEEN A VOUCHER AND AN SGO SCHOLARSHIP?
[expand title=”read more”]The Vouchers provide scholarships to eligible students by utilizing a portion of the state funds allocated for that child to follow them to the non-public school of their choice, and family income must fall below 150% of the Federal free and reduced lunch maximums. In contrast, SGO Scholarships are not funded by the state, but instead by charitable donations. Family income must also fall below 200% of the Federal free and reduced lunch levels for SGO Scholarships. There are other detailed differences between Vouchers and SGO Scholarships, but these listed above are the highlights.[/expand]
*When giving to a campus NORTH of Kokomo, IN: Donations are given through the Community Foundation of Elkhart County. By clicking this “Give Now to CFEC” button, you will be redirected to their website to give online.
*When giving to a campus SOUTH of Kokomo, IN (including the Kokomo campus): Donations are given through the Institute for Quality Education. By clicking this “Give Now to IQE” button, you will be redirected to their website to give online.