Donate With Major Tax Benefits
The Virginia Education Improvement Scholarships Tax Credits Program gives state tax credits to persons or businesses donating to scholarship foundations that provide scholarships to students attending private schools. The tax credit is equal to 65% of the donation, and may be claimed against the individual income tax or corporate income tax. For a donation to qualify, a donor must submit an application to the state and be approved for a specific amount of tax credit.
Donations must be made to foundations approved by the state of Virginia. ASFVA has been approved by the Commonwealth of Virginia to accept donations and provide those donor-directed funds to schools and students as scholarships.
Qualified Donations
A qualified donation is a preauthorized donation to an eligible scholarship foundation by a donor in the form of cash, check, debit/credit card, payroll deduction or marketable securities. A qualified donation does not include goods, services, or property. To receive a tax credit, an individual must contribute at least $500 and up to $125,000 in a taxable year. Businesses are not limited in their contributions.
The Department of Education will preauthorize tax credits up to $25 million for each program year on a first-come, first-served basis, based on a date and time stamp of the donor’s preauthorization request.
Donor Scenario
Example:$2,000 Donation to a Foundation
for an individual in the 25% tax bracket
| Married filing jointly | Without Donation | Donation w/o EISTC | Donation with EISTC |
|---|---|---|---|
| Income | 75,000.00 | 75,000.00 | 75,000.00 |
| Charitable Donation | — | 2,000.00 | 2,000.00 |
| Taxable Income – State | 75,000.00 | 73,000.00 | 73,000.00 |
| 5.75% State Tax | 4,312.50 | 4,197.50 | 4,197.50 |
| 65% Credit | — | — | 1,300.00 |
| State Tax Due | 4,312.50 | 4,197.50 | 2,897.50 |
| State Tax Savings | — | 115.00 | 1,415.00 |
| Taxable Income – Federal | 70,687.50 | 68,802.50 | 70,102.50 |
| Federal Tax Due (25%) | 17,681.88 | 17,200.63 | 17,525.63 |
| Federal Tax Savings | — | 471.25 | 146.25 |
| Total Tax Savings (Va + Fed) | — | 586.25 | 1,561.25 |
| Out of Pocket Cost | — | 1,413.75 | 438.75 |
Contact ASFVA
For more information, contact Anabaptist Scholarship Foundation of VA representative Todd Glenn at [email protected] or (540) 820-8633.