Did you know that you can redirect the income taxes you are already required to pay to the State of Pennsylvania to go to RUCA to be used for student scholarships? These programs are called EITC (Educational Improvement Tax Credit) and OSTC (Opportunity Scholarship Tax Credit). Both programs are designed to encourage a donation of scholarship funds for low-income families that desire a private school education. The only difference between the two programs is that students who receive OSTC scholarships must come from “failing school districts”.
Why would the state promote these programs?
Put simply, it benefits public school districts to have fewer students to support. The average EITC/OSTC scholarship per student is about $3,000, and if that scholarship allows a student to attend a private school, the public school districts avoid the $10,000 – $15,000 cost to educate that child while still receiving the same level of income from school taxes.
Who is eligible to participate?
Both businesses and individuals who pay taxes to the State of Pennsylvania of at least $1,000.
Is there any reason to not participate?
Not any valid reasons that can’t be addressed. This is practically free money that is available to promote the Lord’s work in Christian Education. How can we not help?
How does this work?
PA has a flat tax rate of 3.07%. If you make $100,000, you will owe $3,070 to the state. Through this program, you can redirect that money to go to scholarships for students to attend TCA rather than to go to our state government in Harrisburg.
What if a donation is between $1,000 and $3,500?
For those donating at least $1,000 but less than $3,500 you will give to the ACSI Tuition Fund. Here is a sample of what that would look like.
$100,000 in State Income:
| EITC Donation | $3,070 (.0307 x $100,000) |
| PA Tax Credit | $2,763 (90% of $3,070) |
| Federal Tax Writeoff | $307 (10% of $3,070) |
| Net Cost To You | Less than $307 |
| Benefit to RUCA | $2,916.50 (ACSI charges a 5% processing fee) |
| Conclusion | For a donation of a little more than $300, RUCA gets almost $3,000 to use for scholarships |
Donations of $3,500 or more?
If you are donating at least $3,500, you will give through the Central Pennsylvania Scholarship Fund. Here is a sample of what it would look like.
$200,000 in state income
| EITC Donation | $6,140 (.0307 x $200,000) |
| PA Tax Credit | $5,526 (90% of $6,140) |
| Federal Tax Writeoff | $614 (10% of $$6,140) |
| Net Cost To You | Less than $614 |
| Benefit to RUCA | $6,140 |
| Conclusion | For a donation of a little more than $600 RUCA gets over $6,000 to use for scholarships |
How do I get involved?
To get started, please connect with our team by emailing info@riverstoneunited.com