Tax Credit Scholarships for ECA Students Known as “SGOs”
The Indiana Tax Credit Scholarship Program was established by the state legislature to incentivize private donations for funding educational choice. Through what is more commonly known as SGOs, low to middle income families in Indiana are assisted with placing their children in private schools. This is done through Scholarship Granting Organizations which receive the private donations and make them available to non-public schools.
This program has had significant impact for the families at ECA with assistance going to over 200 students during the 2019-20 school year. In working with the Community Foundation of Elkhart County, anyone can make a tax-deductible gift to ECA’s scholarship fund and help underwrite tuition assistance for our students in turn for a significant tax credit on their Indiana taxes.
Now it is time for another generation to share as ECA prepares the students of today and tomorrow for a world full of challenges and change. As we work to keep tuition costs down for our families, generous gifts fill in the gaps that tuition does not always cover for things such as improved instructional tools and major facility upgrades. Direct, tax-deductible gifts of any size to ECA allow us to surround our students with an up-to-date, effective, and safe educational setting.
Gifts can come in several forms, including cash, gifts online, IRA transfers, appreciated stock, and designations in wills.
Frequently Asked Questions
How does this work?
Either by using the donation form available from the ECA office or by using the online link at https://www.inspiringgood.org/give-online/ anyone, including corporations, can make a donation to the school’s scholarship fund. Also available at the link is an explanation of the different forms of giving available, including online and noncash gifts. All gifts are eligible for the 50% Indiana state tax credit and may also qualify as a charitable deduction on your federal tax return.
What is the donation vs. true cost?
As an example, a $1,000 gift to ECA’s SGO fund creates a $500 direct credit on a person’s Indiana tax due on their annual filing. Multiplying that amount, a $10,000 gift creates a $5,000 credit. By the time deductions are figured on a person’s federal tax form, the actual cost of the gift is only a small percentage of the initial donation.
What ways are there to give?
All gifts qualify for a 50% tax credit that is subtracted from the individual’s or corporation’s Indiana tax due. A portion may also qualify as a charitable deduction on your federal tax form. Ways of giving include:
- Cash gifts
- Credit or debit cards
- Appreciated stock gifts, which generate multiple tax advantages.
- Direct gifts from IRA’s for those aged 70½ or older.
Community Foundation of Elkhart County
CFEC is an Indiana state-certified scholarship granting organization and our direct partner in working out the benefits made available through this program. When you give, the Foundation will apply your gift to the state for your tax credit and issue your income tax receipt. More information about the Foundation is available at https://www.inspiringgood.org/
Can I call ECA for help?
We would be glad to talk to you about the impact the SGO program is having at ECA, but all gifts must be given to the Community Foundation of Elkhart County with a designation for Elkhart Christian Academy. The ECA phone number is 574-293-1609. The number at the Community Foundation is 574-295-8761.
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Location: 25943 CR 22, ELKHART, IN, 46517
Telephone: (574)-293-1609