Tax Credit Scholarships *Add the school logo under the title above Include the school name on Slide 5 Revise Slide 9 depending on whether the school participates in FACTS or if the school accepts vouchers You are here because you have chosen to invest your time and energy in this school. That commitment is key. Mary Jo and I are also here because we believe this program and the legislation that put it into effect is a really good way to allow families of lower and middle incomes to choose this school for their students to attend. SCHOOL NAME

Introductions SCHOOL NAME Sagamore Institute The Legislation – ISSTCP Scholarships for Education Choice Team http://scholarshipsforeducationch oice.com/ The Legislation – ISSTCP Indiana Code 6-3.1-30.5 Sagamore is an Indianapolis-based public policy research organization that promotes education excellence. Sagamore’s Scholarships for Education Choice program is certified by the State of Indiana as a Scholarship Granting Organization. Sagamore Institute cares about education excellence in all schools, believing that the public good is best served by a strong network of public, charter and private schools.   Introduce the team – Laurel; Mary Jo Indiana State Scholarship Tax Credit Program – different than Choice Scholarship Program better known as vouchers. The tax credit scholarship is funded by private donors and is not as restrictive as the Choice Scholarship Program. Three perspectives to view the program from – the prospective donor, the household who would like to receive a scholarship and the school who will do some of the processing.

Donor

Tax Credit 50% of the value of the donation as a state tax credit + federal deduction The credit is applied toward Indiana Income tax liability No cap on the amount that can be donated or credited Credits can be carried forward for 9 years Indiana allocated $14million in tax credits this fiscal year (July 1 – June 30) Go to www.s4ec.com to Check the Available Credits Receipt letter with tax certification number Federal Deduction, if you itemize On July 1st of each year Indiana allocates $9.5 million in tax credits for all of the SGO’s in the state to offer to individuals or businesses. In 15-16 the credits were used up by 2/9/16 Credit is applied toward your Indiana Income tax liability No cap on the amount that can be donated or credited Can be carried forward for 9 years Receipt letter – you will receive a receipt letter from Sagamore which will indicate the tax certification number for your donation. The amount will need to get reported on the appropriate schedule using code 849, and you will also need to attach Schedule IN-SSC 54242 to include the tax certification number.  Instructions for filing are in the receipt letter" That same receipt letter can be used when filing your federal taxes. If you itemize on your taxes you will want to include your SEC donation as Sagamore is a 501c3 and the gift is eligible for a federal deduction. "If you itemize, be sure to include your SGO donation as a charitable deduction.  For some donors, a federal tax savings will result. Consult your tax adviser about how it may impact you.”  Is there a limit to how much I can give and still receive the tax credit? No, there is no limit on your donations. The credit is applied to your state tax liability. It may be carried forward up to nine subsequent years, but may not be carried back or refunded. Can I designate a school or student to receive my gift? Yes, and no. You may designate one of our participating schools to receive your gift. However, SGO donations may not designate a particular student; this would be considered a tuition payment and is not eligible for a tax credit.

Your Gift’s True Cost For example: $1,000 SEC Donation - $500 Indiana Tax Credit $500 True cost The first priority to giving is to benefit the school. There are several ways to explain the tax credit to help people to understand. It sometimes takes a couple of different ways for folks to realize the benefits. Just explain it. 50% of donation goes as a credit to state taxes and then can be deducted on Fed The example shows a picture of someone’s state tax form. The example in the picture shows someone earning $100,000 and owing about $3000 in state tax credits (3.4% tax rate). You can use an example of someone earning $50,000 and owing $1500 instead depending on your audience. Reiterate that we all pay state taxes. If you are employed you are likely getting those taxes taken automatically from your paycheck at 3.4%. Someone earning $50,000 likely has about $1500 in tax liability that can be eliminated by donating to this program. Explain it from the perspective of a donor who is already giving. Providing this option as a giving allows the donor to multiply their gift. If the donor is already supporting the school with $2000; say they decide to put $1000 of that gift into the Annual fund of the school (unrestricted gift) and the other $1000 they put toward the tax credit fund. In the end the approximate they could increase their gift.

Your Gift’s Impact Designate your gift to support the school of your choice. Since 2011 $29 million dollars have been awarded to over 7,500 students. Gifts can be designated to support a participating school. However, gifts may not be designated to support a particular family or student. These are considered tuition payments and would not be eligible for a tax credit. ” Last year was [our daughter's] first year in a private school setting and we saw her flourish. This was the best choice we have made as parents, I just wish it was a little more affordable for some families.”

Four Ways to Give Check – with a completed Donation Form Donate Stocks or Securities Donate Online – use a credit card or a checking account; can setup recurring donations http://scholarshipsforeducationchoice.com/donors / IRA – Qualified Charitable Distribution The form is pretty self explanatory – we do need the last four of the social security number. SEC reports the gift to the Department of Revenue who then provides us with the certification needed to claim the tax credit. They need the last four of the soc number in order to match the gift with the credit. Donate Stocks or Securities through our Single Charity Fund with the National Christian Foundation – there are two forms to complete – the donor form and the NCF form – both are found online by completing the initial stock giving form. Donate Online through our partnership with iDonate.  Donate using a credit card or checking account.  iDonate can also be utilized to set up recurring donations.  Additionally, iDonate offers the opportunity to donate just about anything… vehicles, jewelry, electronics and even commodities. IRA – Qualified Charitable Distribution- if 70 ½ or older they have to take a mandatory distribution from their IRA. They can donate all of that or a portion of that directly to the scholarship fund and receive the state tax credit. The income from the 401k does not get added in to their total income on their federal taxes. This is the last slide of this section – ask for any questions. Have them try to explain it to their neighbors.

Households

Students & Households Eligibility requirements: Resident of Indiana Between 5 and 22 years of age and enrolled in an eligible school Be a member of a household with an annual income of 200% or less of the amount required to qualify for the USDA’s free or reduced meal program School – K-12. Cannot fund preschoolers

~supports access to private education ~receives tax credit Donor ~supports access to private education ~receives tax credit ~receives federal deduction Explain each section first Donor – supports access to private education; state tax credit equal to 50% of the amount of the donation; deduct full donation amount on federal taxes if the donor itemizes Participating School Eligible students/households Relationships – Donor supports the school with a donation to their fund School – encourages donors; has the relationship with the donor There is no direct relationship between the donor and the Student/household. The donor may not designate a student or household. They may only designate the school. SEC – has a role with each group Donor – we send a donor letter; general fund donors; request reprints of letters Students/Households – we verify income but otherwise have no contact with students or households School – primary contact Eligible students/households ~apply for scholarship ~provide income documentation Participating school ~provides scholarship info. to families ~sets scholarship amounts ~applies scholarships to student accounts