Turning tax dollars into scholarships for AFS students.
Through Pennsylvania state tax credit programs, individuals and businesses can provide financial aid scholarships for qualifying AFS students, and then receive a PA state tax credit for up to 90% of their contribution amount. Through these programs, individuals and businesses help provide access to a transformative AFS education to our students – and receive a tax credit for doing so!
If you are interested in participating in a tax credit program, please consult your tax advisor and contact the AFS Advancement Office at 215.576.3957 or development@abingtonfriends.net for more information.
Friends Collaborative
Through AFS’s membership in the Friends Collaborative, friends of AFS now have the opportunity to receive tax credits for supporting scholarships for AFS students. Individuals and businesses in Pennsylvania can participate in the Friends Collaborative by making a minimum contribution of $3,000 per year for two consecutive years to support tuition assistance at AFS and fellow Quaker schools. In turn, participants receive a PA state tax credit for 90% of their contribution amount. As an example, a $10,000 Friends Collaborative gift to support tuition assistance has a net cost of just $1,000 to the donor – making this truly a win-win for donors and AFS! AFS receives at least 75% of every contribution from AFS donors, and the remainder supports scholarships at other Quaker schools in our area. Learn more about the Friends Collaborative.
Friends Collaborative tax credits are in high demand, and AFS is actively adding donors to a wait list in anticipation of new opportunities to participate this spring. Learn more by contacting the Advancement team at 215-576-3967 or development@abingtonfriends.net.
Educational Improvement Tax Credit Program (EITC)
The Commonwealth of Pennsylvania offers a unique opportunity for businesses in the state to reduce tax liability by contributing to registered scholarship organizations. As with the Friends Collaborative, through the EITC Program, businesses support scholarships at Abington Friends School and then receive a tax credit equal to 90% of the contribution for a two-year commitment, or 75% of the contribution for a one-year commitment. Learn more about the EITC program.
Opportunity Scholarship Tax Credit Program (OSTC)
Similar to EITC, the OSTC program provides tax credits to eligible businesses contributing to an Opportunity Scholarship Organization. OSTC contributions are used to provide tuition assistance to eligible AFS students residing within the boundaries of a low-achieving school. Learn more about the OSTC program.
Program Details
How can I participate in the Friends Collaborative?
Opportunities to participate in the Friends Collaborative arise at unpredictable times, as the Collaborative is approved for new or renewed credits from the state of Pennsylvania and then must fill those credits within 60 days. The Advancement team will spread the word among the AFS community when such opportunities arise – but in the meantime, it’s very helpful to know who may be interested so that we can act quickly when credits become available!
Friends Collaborative tax credits are in high demand, and AFS is actively adding donors to a wait list in anticipation of new opportunities to participate this spring. If you are interested in learning more, please contact the Advancement team at 215-576-3967 or development@abingtonfriends.net.
What is the timeline for applying for EITC and OSTC?
- May 15 – Business applicants who have fulfilled their 2-year commitment and wish to reapply to renew their 2-year commitment.
- May 15 – Businesses who are in the middle of their 2-year commitment.
- July 3 – All other businesses.
Is my business eligible to participate in EITC and OSTC?
If your business is authorized to operate in Pennsylvania and pays one of the following taxes, you can register to be eligible for the Pennsylvania Educational Improvement Tax Credit Program (EITC) and the Pennsylvania Opportunity Tax Credit (OSTC).
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Share Tax
- Title Insurance Companies Share Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
- Personal Tax of S corporation shareholders or Partnership partners
How can my business apply to EITC and OSTC?
EITC
The single application is now available online from the Pennsylvania Department of Community and Economic Development. This business application guide provides further information on the program as well as guidelines for filling out the application form. Additionally, you can call the Advancement Office for guidance at 215-576-3967.
OSTC
Pennsylvania businesses can apply for Opportunity Scholarship Tax Credits through DCED’s electronic single application system. The business application guide, found here explains the process of applying. Additionally, you can contact the Advancement Office for guidance at 215-576-3967 or development@abingtonfriends.net.
Tax credit applications for both programs will be processed on a first-come, first-served basis by day submitted, so please submit your application on the first day your business is eligible. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications. Applications will be approved until the amount of available tax credits is exhausted.
Who should I contact with questions?
The Advancement team would be happy to answer any questions about the Friends Collaborative, EITC or OSTC. Please contact us at 215-576-3967 or development@abingtonfriends.net
At the Department of Community and Economic Development (DCED), call 717-787-7120 or find more information online at dced.pa.gov.