Offering Scholarship For An LCA Student Can Eliminate Your State Tax
November 21, 2018 at 4:33 p.m.
Offering Scholarship For An LCA Student Can Eliminate Your State Tax
By Scott Wiley-
We live in an area of the country in which we have extremes in household income. While some people are living week to week and just trying to put food on the table, others have seven-figure incomes and are looking for ways to protect and maximize their investments as well as help those in need.
What does this have to do with Lakeland Christian Academy? Let me explain.
There are many local families that wish that their children could experience the benefits of Lakeland Christian Academy with their smaller class sizes, increased individual attention, Christian culture and worldview, high academics, and opportunities for athletics and other extracurricular activities. However, even if they could greatly benefit from LCA, we are a private school that has to charge tuition to exist. Unfortunately, many local families cannot afford LCA.
We are continually looking for ways to offer financial aid to families in need. One fantastic opportunity that is not well known is the state school scholarship tax credit program. This is a true win-win situation. This program offers huge benefits to all families and corporations no matter what their size or income.
What is Indiana’s tax credit scholarship program?
Indiana's tax credit scholarship program was created in 2009 as a way to give families who meet income guidelines an opportunity to send their child to a participating private school. Through the generosity of Hoosiers, individual and corporate donations are given as scholarships so students may attend a private school that may not have been an option to them otherwise.
Lakeland uses the Sagamore Institute as their scholarship granting organization (SGO). Since the beginning of this program, SGOs have awarded over $45 million in scholarships to more than 35,000 Hoosier students in partnership with more than 300 private schools statewide.
The Sagamore Institute is a certified SGO that awards scholarships to eligible Lakeland students. The Sagamore Institute receives funding for scholarships from private and corporate, charitable donations. Those who have donate to an SGO approved by the Department of Education will then be eligible to take advantage of a 50 percent credit against their individual or corporation state-tax liability. This is an actual tax credit, not just a gross income reduction. This donation may also qualify for a federal tax deduction.
While there are no limits to how much a donor can contribute to a qualified SGO, the entire tax credit program cannot award more than $14 million in credits this fiscal year (July 1, 2018 – June 30, 2019).
Here is an example of how you can donate $1,000 and only cost you $150:
If you are in the 35 percent tax bracket and you donate to Lakeland Christian Academy’s Scholarship Program, minus $500 Indiana tax credit, minus $350 federal tax savings* (see your tax accountant for actual number); equals $150 true cost for a $1,000 donation.
The more you donate the more you save. In fact, if you know what your Indiana state tax is going to be, you can just double that amount and donate to the SGO. Then, with your 50 percent state tax credit, this will totally eliminate 100 percent of your state tax. Plus, if you qualify, you can even get a federal tax deduction.
This is a fantastic win-win situation for both the donor and the scholarship recipient. Since the average tax credit scholarship amount given by Lakeland Christian Academy is $500, a $10,000 donation toward LCA’s SGO funds 20 student scholarships.
If it sounds confusing, and it really isn’t once you understand how it works, we would like to invite you to a free luncheon presentation to learn more about the SGO program. It will be held at the Greater Warsaw Chamber of Commerce building at 11 a.m. Dec. 7.
For more information or to RSVP for the luncheon, contact LCA Director of Development Scott Wiley at 574-267-7265 or email [email protected].
Thank you and have a blessed Thanksgiving!
We live in an area of the country in which we have extremes in household income. While some people are living week to week and just trying to put food on the table, others have seven-figure incomes and are looking for ways to protect and maximize their investments as well as help those in need.
What does this have to do with Lakeland Christian Academy? Let me explain.
There are many local families that wish that their children could experience the benefits of Lakeland Christian Academy with their smaller class sizes, increased individual attention, Christian culture and worldview, high academics, and opportunities for athletics and other extracurricular activities. However, even if they could greatly benefit from LCA, we are a private school that has to charge tuition to exist. Unfortunately, many local families cannot afford LCA.
We are continually looking for ways to offer financial aid to families in need. One fantastic opportunity that is not well known is the state school scholarship tax credit program. This is a true win-win situation. This program offers huge benefits to all families and corporations no matter what their size or income.
What is Indiana’s tax credit scholarship program?
Indiana's tax credit scholarship program was created in 2009 as a way to give families who meet income guidelines an opportunity to send their child to a participating private school. Through the generosity of Hoosiers, individual and corporate donations are given as scholarships so students may attend a private school that may not have been an option to them otherwise.
Lakeland uses the Sagamore Institute as their scholarship granting organization (SGO). Since the beginning of this program, SGOs have awarded over $45 million in scholarships to more than 35,000 Hoosier students in partnership with more than 300 private schools statewide.
The Sagamore Institute is a certified SGO that awards scholarships to eligible Lakeland students. The Sagamore Institute receives funding for scholarships from private and corporate, charitable donations. Those who have donate to an SGO approved by the Department of Education will then be eligible to take advantage of a 50 percent credit against their individual or corporation state-tax liability. This is an actual tax credit, not just a gross income reduction. This donation may also qualify for a federal tax deduction.
While there are no limits to how much a donor can contribute to a qualified SGO, the entire tax credit program cannot award more than $14 million in credits this fiscal year (July 1, 2018 – June 30, 2019).
Here is an example of how you can donate $1,000 and only cost you $150:
If you are in the 35 percent tax bracket and you donate to Lakeland Christian Academy’s Scholarship Program, minus $500 Indiana tax credit, minus $350 federal tax savings* (see your tax accountant for actual number); equals $150 true cost for a $1,000 donation.
The more you donate the more you save. In fact, if you know what your Indiana state tax is going to be, you can just double that amount and donate to the SGO. Then, with your 50 percent state tax credit, this will totally eliminate 100 percent of your state tax. Plus, if you qualify, you can even get a federal tax deduction.
This is a fantastic win-win situation for both the donor and the scholarship recipient. Since the average tax credit scholarship amount given by Lakeland Christian Academy is $500, a $10,000 donation toward LCA’s SGO funds 20 student scholarships.
If it sounds confusing, and it really isn’t once you understand how it works, we would like to invite you to a free luncheon presentation to learn more about the SGO program. It will be held at the Greater Warsaw Chamber of Commerce building at 11 a.m. Dec. 7.
For more information or to RSVP for the luncheon, contact LCA Director of Development Scott Wiley at 574-267-7265 or email [email protected].
Thank you and have a blessed Thanksgiving!
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