Tax Credit Scholarships INSERT SCHOOL NAME

Save the day for a student and save on your taxes! A tool to help students access a ADD SCHOOL NAME education INSERT SCHOOL LOGO Indiana School Scholarship Tax Credit Program Warmly welcome everyone. Consider having a school leader or parent give a testimony about the value of the school. Save the day for a student and save on your taxes!

School Scholarship Tax Credit Program To provide scholarships for eligible students Encourages Private Donations Through Scholarship Granting Organizations (SGOs) INSERT SCHOOL LOGO Program enacted in 2009 – launched in 2010 PURPOSE – encourage private donations to support scholarships for low/middle income students attending PRIVATE SCHOOLS. 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 (SGO). 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.   The legislation requires that the gifts and scholarships go through an SGO. 50% STATE TAX CREDIT! PARTNERSHIP

State Tax Credit 50% of the value of the donation as a state tax credit The credit is applied toward Indiana Income tax liability No limit on the amount that can be donated by individuals or businesses Credits can be carried forward for 9 years Indiana allocated $15 million in tax credits for this fiscal year (7/1/2019) Claim credit with tax certification number found on receipt letter *Let’s talk specifically about the tax credit. The state law says that donors can claim 50% of their donation as a credit on their state tax return. *Credit applied toward income tax (AGI tax, Financial Institutions Tax, Insurance Premiums Tax) liability; unused credits can be carried forward 9 subsequent years. *$15 million allocated this year (7/1/2019-6/30/2020) *Receipt letter – donors receive a receipt letter from Sagamore which will indicate the tax certification number for the donation and provides instructions for claiming the credit on your tax return. 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. 2019-20 $15M

Indiana Income Tax Liability For example: $1,000 SEC Donation ($500) Indiana Tax Credit $500 True cost CONSULT YOUR TAX PROFESSIONAL ABOUT HOW THE TAX CREDIT MAY IMACT YOU *Line 8 of your Indiana tax return will show you how much state AGI tax liability you have. It is typically 3.2% of your AGI. This is the amount that can be offset with the tax credits. *We mentioned that businesses can use this as well --- the legislation states that the credit can offset AGI tax, the Financial Institutions tax and the Insurance Premiums tax *For those who may already be donating to the school, this is a way that you can give more for the same out of pocket cost. *CONSULT YOUR TAX PROFESSIONAL

PLEASE CONSULT A TAX PROFESSIONAL WHO UNDERSTANDS YOUR TAX SITUATION Can I deduct my donation on my federal tax return? PLEASE CONSULT A TAX PROFESSIONAL WHO UNDERSTANDS YOUR TAX SITUATION Yes, if you itemize deductions! Donors who itemize will claim 50% of the donation as a charitable contribution. SOME donors who itemize will claim the other 50% as a state tax payment. We have an tool on our website that can help you estimate the out of pocket cost of an SGO donation after credits and deductions. https://www.scholarshipsforeducationchoice.com/donors/true-cost-calculator/ EVERYONE RECEIVES THE 50% STATE TAX CREDIT! Those who itemize also get a federal tax benefit Regulations to clarify some issues with the 2018 tax reform made this a bit trickier to explain. 50% of donations received after 8/27/2018 may be claimed as a federal charitable contribution. (The other 50% isn’t a charitable contribution because the donor received a BENEFIT for it.) New pending regulations clarify that some donors (those with less than $10k in SALT deductions) may claim the other 50% as a state tax payment. NOTE: if you have wifi access, you can follow link and demonstrate the true cost calculator.

Ways to Give Check – with a completed Donation Form Donate Stocks or Securities (form on website) Make a Qualified Charitable Distribution directly from an IRA (see brochure) Donate Online – use a credit card or a checking account; can setup recurring donations LINK TO SCHOOL WEB PAGE ADD TEXT TO GIVE INFORMATION *The donor form collects basic information about the donor (name/address/contact information) and tells us which school the donor would like to support with scholarships. SEC reports the gift to the Department of Revenue who then provides us with the certification needed to claim the tax 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. (THESE CAN TAKE A WEEK OR SO TO PROCESS) *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.  *Refer to QCD brochure for donations made directly from IRAs for donors over 70.5 *More information on our website www.scholarshipsforeducationchoice/donors

Scholarship Recipients Eligibility requirements: Resident of Indiana Between 5 and 22 years of age and enrolled in an eligible school (K-12) Household income below the limits The school determines the scholarship amount, using their financial aid policies. 5-22 K-12 Let’s talk a bit about who receives the scholarships.

INSERT SCHOOL LOGO and SUB SCHOOL STATS (Sub school colors) SGO Scholarships Awarded: 00 Scholarships awarded in past 8 years $00,000 $0000 Average Award Please request your stats from SEC and substitute your numbers for the zeros. You can also substitute your school colors for the icons/text/numbers. Average Recipient Family Size/Income: 0/$00,000

IMPACT INSERT SCHOOL NAME has provided tax credit scholarships totaling INSERT SCHOOL INFO over the past INSERT SCHOOL INFO years. The need is higher than available funds. ” 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.” *The real story isn’t in the numbers……it is in the impact that the opportunity to attend the school has on the student and the family. “The opportunity for our children to attend a private school has given our family hope in a brighter future for our children to live and thrive. There is a weight lifted off our shoulders since finances are not the first issue at hand in this situation.”

CALL TO ACTION Make a donation Practice the pitch --- Be comfortable explaining to someone else Talk about the opportunity to those in your circle of influence (tools: brochures, website, video) 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 (3.2% 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 3.2%. 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. Host a small event.

QUESTIONS? INSERT SCHOOL NAME *THANK YOU FOR LISTENING *WHAT QUESTIONS CAN WE ANSWER FOR YOU? *TAKE A BROCHURE TO SHARE WITH SOMEONE ELSE YOU KNOW WHO MIGHT BE INTERESTED! INSERT SCHOOL NAME