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The Friends Education Equity Collaborative Tax Credit Program

INCREASING ACCESS TO FRIENDS EDUCATION FOR MORE FAMILIES

The Collaborative was organized by staff and volunteers of ten small Quaker elementary schools in the greater Philadelphia region.

The purpose of The Collaborative is to foster the growth of Quaker Education by providing funding that makes a Quaker education accessible for more families.

In 2016, we formed a Special Purpose Entity (LLC) to take advantage of the changes in the Pennsylvania Education Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) programs.

To date, we have raised a little over $2,000,000 with 15 participating schools receiving $1,033,833 in the 2016-17 academic year and guaranteeing the same amount in the 2017-18 academic year. Some members who participate are involved in Quaker schools, others are simply interested in the easy tax credit and know that they are doing some good. 

Looking forward The Collaborative will apply for more credits with two new LLC's. If you qualify to participate in this opportunity, you will receive a 90% credit for your donation.You may also qualify for a federal deduction for the donation. 

For more information contact: 

Advancement@stratfordfriends.org

The collaborative identified the following two people as points of contact to answer questions.

Jeff Markovitz: cell: 267-872-9721 email: jeffm@pmfs1780.org
John Gilliland: cell: 484-919-0282 email: johng@pmfs1780.org

Friends Education Equity Collaborative c/o ABS, PO Box 254, Oreland, PA 19075


As an individual you can become a member of the LLC and take advantage of this awesome tax credit opportunity if you have a PA tax liability and earn more than $200K ($300K jointly) or have a net worth (excluding liabilities and your primary residence) greater than $1M (this makes you a “qualified investor”) and own at least one (1) share of a company incorporated in PA (a “Pennsylvania business firm” can be any publicly traded company incorporated in Pennsylvania, e.g., Comcast).

If you don’t qualify because you aren’t invested in a company incorporated in PA, all you need to do to qualify is buy one (1) share of such a company! Not difficult at all.

The following example is for illustrative purposes only. We encourage donors to review this opportunity with a financial advisor and/or legal professional.

For each $10,000 of contribution made to the Friends Education Equity Collaborative LLC (LLC), using the 2017 tax year as the example year:

● The contributor remits $10,000 to the LLC in 2017
● The contributor can reduce his or her Pennsylvania (PA) tax liability by 90% of the gift, $9000 in this example
            ○ When filing his or her 2017 federal return, the contributor claims a $10,000 charitable contribution on Schedule A. ($10,000 remitted to the LLC less $9000 PA tax liability reduction, net federal deduction is $1000)
● Assuming a marginal federal tax rate of 33% (2017 estimated marginal rate for taxable income between $233,350 - $416,700 married filing jointly), the after tax impact of the $1000 claimed is $670
            ○ When filing his or her 2017 PA return, the contributor claims the $10,000 gift to the LLC
● PA taxes due are reduced by 90% of the $10,000 gift, or $9000
            ○ Cash timing - The contributor will be out the $10,000 remitted to the LLC until he or she files their 2017 taxes unless:
● The contributor adjusts his or her Federal and PA withholding's after incorporating the impact of the $10,000 gift in their estimated tax liability, or
● The contributor adjusts his or her Federal and PA quarterly estimated tax payments to incorporate the impact of the $10,000 gift in their estimated tax liability, or
● Some combination of withholding and quarterly payments adjustments as discussed immediately above


Recap
$10,000 2017 contribution to LLC
($9000) reduction in PA 2017 tax liability
($330) reduction in Federal 2017 tax liability after claiming $10,000 charitable gift deduction on 2017 Federal Schedule A (assuming 33% marginal tax rate)
$670 Net out-of pocket LLC gift cash impact

The LLC expects minimum gifts of $3,000 per individual. There is a mandatory two-year commitment.

During the 2016-2017 academic year, 10 small Friends schools each benefited $80,000 from The Friends Collaborative scholarship grants. If you are eligible, please join me in exploring this opportunity. The out-of-pocket cost to contributors is about 7 cents on every dollar of scholarship!

 

Qualification Guidelines

Do You Qualify? 
If you can answer YES to any one of these questions, you may qualify:

  1. Are you employed by, or a partner in, a for-profit business and your annual personal income exceeds $200,000 (or $300,000 for a couple)? (Sole proprietorship are not qualified.)

  2. Are you employed by a not-for-profit and your annual personal income exceeds $200,000 (or $300,000 for a couple) or your net worth exceeds $1,000,000, excluding the value of your primary residence and you own stock in any Pennsylvania incorporated “business firm”?

  3. Are you retired and your annual personal income exceeds $200,000 (or $300,000 for a couple) or your net worth exceeds $1,000,000, excluding the value of your primary residence and you own stock in any Pennsylvania incorporated “business firm”?

  4. Are you an owner of a Pennsylvania Corporation or Partnership that has net assets in excess of $5,000,000?

  5. Are you an officer of a Bank or Savings and Loan, acting in a fiduciary or professional capacity?

  6. Are you an officer of Insurance Company, acting on behalf of the company?

  7. Are you an officer or representative of a Trust, with total assets in excess of $5,000,000, acting on behalf of the trust?












Tel: 610.355.9580
Fax: 610.355.9585
School Closing Number: 486