The Pocono Family YMCA is approved as a Pre-K Scholarship Organization, Educational Improvement Organization, and a Scholarship Organization eligible to receive corporate contributions through Pennsylvania’s Educational Improvement Tax Credit (EITC) programs.
Last year, our YMCA awarded nearly $103,000 in financial assistance for families throughout Monroe County. Funds received from the EITC program will greatly assist us in meeting the need for quality early & school age education and assisting families by ensuring that no one is turned away from opportunities due to inability to pay.
Q: What is the EITC Program?
A: Established by the Pennsylvania General Assembly, the tax credit program allows businesses to contribute to an Educational Improvement Organization (EIO) in lieu of tax liability. The Pocono Family YMCA is an approved EIO. The state sets aside millions of dollars for educational improvements through this program each year. Help us keep a share of those state tax dollars working for our local community!
Q: What is the benefit to companies?
A: Companies can effectively get a dollar-for-dollar reduction in the tax payment required for a business. The EITC is a tax credit of the amount of the donation made. If a company has not maximized their percentage of charitable donations, they can also deduct their contribution on their federal tax return. Of course each company’s tax situation is different, so you should consult your tax preparer. Businesses donating to the Y have the opportunity to receive a 75% state tax credit. The amount increases to 90% for qualifying businesses that commit to making the same donation for two consecutive years.
Q: Why are tax credits more attractive than a standard charitable donation?
A: While deductions reduce your amount of taxable income, tax credits reduce your actual tax bill, dollar-for-dollar. Tax credits are utilized AFTER your tax liability is established.
Q: What is the process for businesses to receive the tax credit?
A: Businesses send the Department of Community and Economic Development (DCED) a one-page application for the tax credit, which is available online. To be redirected to the online application click here. Funds are distributed on a first-come, first-served basis. If there are funds available and the company does not owe back taxes, DCED will send an approval letter to the applicant. The company then has 60 days to make its donation(s) and then an additional 30 days to send proof of the donation(s) to DCED. This entire process must not take more than 90 days from the date of their approval.
For more information, contact: Matt Rumph, CEO at 570-421-2525 ext. 111 or firstname.lastname@example.org.