Support Overbrook School for the Blind through EITC EIO donation. Act now to redirect your tax dollars to support an approved Pennsylvania charity. Friends of Education LLC is seeking participants for the 2024 tax year. We are currently enrolling donors.
How can I choose where to spend my tax dollars? The Educational Improvement Tax Credit (“EITC”) program issues state tax credits to individuals and businesses who make donations to approved Pennsylvania charities. These approved charities must register with the Commonwealth as Educational Improvement Organizations (“EIOs”). A list of approved EIOs can be found here. There are nearly 900 registered EIOs with the Commonwealth.
The tax credits equal 90% of the contribution if claimed for two consecutive years. Donors who enroll this year are required to commit to gifts in 2025 and 2026.
To participate in this program, Pennsylvania’s EITC law requires that a participating individual contributes to a Special Purpose Entity (“SPE”). The SPE then distributes the funds to the charity of the participant’s choice.
Friends of Education makes it easy for you!
Individuals can give money to their favorite charity in the EITC program.
Friends of Education manages several SPEs with EIO EITC credits. The process is very easy. Here is an example of how this works.
The Duvall family earns $300,000. Their marginal federal tax rate is 25% and they itemize on their federal tax returns. They also pay $9,210 in Pennsylvania state income tax. The Duvall family joins Friends of Education and makes a $10,000 donation to support the EIO charity of their choice. Friends of Education LLC writes a check for $10,000 to that charity (or those charities). The Duvall family receives a state income tax credit of $9,000. The Duvall family reduces its total Pennsylvania tax liability from $9,210 to $210. The Duvall family also receives a charitable contribution deduction on the remaining $1,000, so they can deduct $250 from their federal return.
Below is a chart illustrating the difference if the Duvall family made a charitable donation directly to a qualified organization and using the EITC Program.
| |
Charitable donation directly to an approved EIO |
EITC contribution to an approved EIO |
| Donation |
$10,000 |
$10,000 |
| State Tax Credit |
$0 |
$9,000 |
| Charitable contribution deduction on Federal return |
$2,500 |
$250 |
| Total out of pocket cost |
$7,500 |
$750 |
Using the EITC program it costs the Duvall family $750 to make a $10,000 donation to an approved Pennsylvania charity. Instead of paying the Pennsylvania Treasury, the Duvall family gets to direct their tax payment to the charity of their choice.
Overbrook School for the Blind is an Educational Improvement Organization through EITC because every tuition pays nothing to attend Overbrook. Click here to learn more about EIOs.
The Office of Development will host quarterly virtual meetings to explain why an EITC donation is important to Overbrook School for the Blind. We will host professionals who can help you understand the entire process. Our first EITC Zoom meeting will be hosted on April 25, 2025 at 12pm. The meeting should last about 45 minutes. Click here to join the meeting.
