Ways to Give
Many companies offer their employees, spouses, and retirees an opportunity to financially support a favorite charity and at the same time receive a matching contribution from their employer through their Matching Gift program. We encourage you to consult with your Human Resources Department to see if your company has a designated Matching Gift program, what program areas they will support, and what is the maximum amount they will match each year. Make sure to obtain the appropriate matching gift form and return it along with your gift to PJP. We will complete the necessary information on behalf of PJP and return it to your company for the processing of their gift.
Businesses in Pennsylvania can receive up to a 90% tax credit by donating to the Educational Improvement Tax Credit (EITC) or the Opportunity Scholarship Tax Credit (OSTC the programs. By directing tax dollars your business will already be paying, you can help provide a quality education for children who otherwise would not be able to afford it. The EITC tax credits allow businesses to make these donations for pennies on the dollar. PJP works with representatives from BLOCS to ensure that this process is streamlined for businesses.
Educational Improvement Tax Credit (EITC). How it works for an individual
If you have a PA tax liability of $1,000 or taxable income of $34,000 or greater, then this program may be for you. EITC allows you to make a donation to Pope John Paul II High School.
You write a check for $5,000 to Business Leadership Organized for Catholic Schools or the Foundation for Catholic Education (who oversees the EITC program for the Archdiocesan schools) and complete a simple agreement naming PJP as the recipient of your donation. PJP receives 100% of the donation.
With this donation, you become eligible for a 90% tax credit, which in this example is equal to $4,500. Therefore, your total outlay of cash is $500. ($5,000-$4,500=$500)
It can get even better if you are able to itemize your deductions. If you do, you can claim the residual amount ($500 in this example) as an itemized deduction
Educational Improvement Tax Credit (EITC). How it works for a business.
EITC allows you to make a donation to Pope John Paul II High school if your company owes Pennsylvania taxes and commits to make a donation to PJP for one year. Approved businesses receive a tax credit equal to 75% of the contribution. The credit increases to 90% if the business agrees to the same amount for two consecutive tax years. Neighborhood businesses, mid-sized companies, and large corporations are eligible.
Assume your company owes $25,000 in Pennsylvania taxes annually and commits to making a donation for one or two years. Your Company completes an online application with the PA Department of Community and Economic Development (DCED). Once DCED approves the application, your Company has 60 days to make a donation to Business Leadership Organized for Catholic Schools (BLOCS) or the Foundation for Catholic Education (who oversees the EITC program for the Archdiocesan schools) naming PJP as the recipient of your donation. PJP receives 100% of the donation. Then within 90 days, your Company must send proof of the donation (a written acknowledgment from BLOCS or the Foundation) to DCED who in turn notifies the PA Department of Revenue of the credit to be applied to the Company’s account.
If your company commits to a one-year donation, you can receive a 75% PA tax credit towards your Company’s PA taxes. Therefore, in this example in order to cover the entire $25,000 tax liability the donation must be for $33,334 ($33,334 x 75%=$25,000).
If your company commits to a two-year donation, you can receive a 90% PA tax credit per year towards your Company’s PA taxes. Therefore, in this example in order to cover the entire $25,000 tax liability the donation must be for $27,778 for each year ($27,778 x 90%=$25,000).
BLOCS or the Foundation will assist the Company through the process.
For More Information contact Mr. Vincent Cazzetta, President, Pope John Paul II High School: [email protected]
Non-cash gifts of property such as computers, school buses, books, scientific equipment, art materials, sports equipment, etc. also make important gifts. The fair market value of such items is deductible for income tax purposes. A formal appraisal is required by the IRS for gifts in kind valued over $5,000.
A gift of appreciated securities is one way to make a significant contribution at a reduced cost to you. Federal tax law allows a charitable deduction for the full market value of securities on the date of your gift.
Gift of Real Property
Real property can be given as an outright gift or by request.
There are a number of ways to make a gift of life insurance:
- Absolute Assignment: You may wish to transfer ownership of a policy that has outlived its original purpose
- Co-Beneficiary: You may name Pope John Paul II High School as a co-beneficiary of part of the proceeds of a new or existing policy.
Gift Annuity Agreements
Gift annuity agreements allow you to make a gift to Pope John Paul II and receive fixed annual payments for life. You are allowed a tax deduction for a portion of the amount transferred and for a period of years on part of the payments will be taxed as income. The size of the payments is based on the age(s) of the recipients at the time of the gift.
These enable you to make a significant gift to Pope John Paul II during your lifetime and continue to receive income for yourself and/or other beneficiaries. After the life interests have passed, the remaining principal will pass to Pope John Paul II High School. In addition to income tax deductions in the year, the trust is instituted (with five-year carry over privileges), donors may avoid capital gains and significantly reduce estate and gift taxes