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The Roman Catholic Diocese of Pittsburgh
Assuring Catholic Education to all who Want it.
The Catholic Diocese of Pittsburgh considers faith-formed education an important part of its mission. As our culture continues to challenge the Christian values on which our country was founded, caring people continue to make sacrifices to help us assure that a faith-centered education can be accessed by all who desire it. Your commitment to Catholic education is essential to assure that future generations know and practice our faith. To help you support this effort, we offer the following tools as ways to make cost-effective gifts to enhance the education of children and young adults entrusted to our care.
PENNSYLVANIA TAX CREDIT PROGRAMS
The Commonwealth of Pennsylvania offers several education-related tax credit programs. The Educational Improvement Tax Credit Program [EITC] allows qualified businesses to fulfill their state tax burden while supporting financial aid to eligible educational and scholarship programs. The Opportunity Scholarship Tax Credit Program [OSTC] allows qualified businesses to do likewise, while supporting low-income students who only have access to low achieving schools in Pennsylvania. The programs require a two (2) year commitment in order to qualify for the 90% maximum tax credit under both programs.
Business firms that pay any of the following corporate taxes to the Commonwealth of Pennsylvania are eligible to participate: Corporate Net Income Tax (CNIT); Capital Stock Franchise Tax; Bank and Trust Company Shares Tax; Title Insurance Companies Shares Tax; Insurance Premiums Tax; Mutual Thrift Institutions Tax; Malt Beverage Tax and Personal Income Tax of S corporation shareholders or Partnership partners.
Business firms must apply and qualify for the EITC program. If approved, they receive a tax credit equal to Seventy-Five Percent (75%) of the donation to an approved non-profit scholarship or educational improvement organization. The tax credit increases to Ninety Percent (90%) if the business firm, commits to making the same level of donations for two consecutive years.
The OSTC Program is modeled after the EITC program and provides financial aid support to children who live within the attendance boundaries of Pennsylvania's worst performing 15% of schools. Just like the EITC program, the OSTC program awards Pennsylvania businesses a tax credit of 75% if the gift is made for one year or 90% if the company commits to making the same donations for two consecutive years. OSTC funds are available in addition to any credits received under the EITC program. Under the OSTC program, any entity that qualifies for EITC tax credits will also qualify for OSTC tax credits. Therefore, the Issuer will also qualify for OSTC tax credits.
For more information, visit PA's Department of Community and Economic Development website or contact Michael Freker at MFreker@DIOPITT.ORG or 412-456-3055.
SPECIAL PURPOSE ENTITY (SPE)
A Special-Purpose Entity (SPE) is a legal entity, usually a limited liability company or limited partnership, created to fulfill narrow, specific or temporary objectives.
For certain qualified individuals who work for businesses that are eligible to participate in the EITC and OSTC programs, it may be possible to receive a Pennsylvania Tax Credit for up to 90% of your contribution to the Diocese's Scholastic Opportunity Scholarship Fund.
For more information on SPEs, please click on the video below.
PA EITC OSTC Webinar - Part 2 (8:31)
[used with written permission of the presenter]BISHOP'S EDUCATION FUND [BEF]
The Bishop's Education Fund is an endowed fund within the Catholic Foundation known as Sharing in FaithTM, Our Catholic Legacy Foundation. Gifts contributed to the Fund are never directly distributed to students, but rather are added to the principal of the Fund to generate income that is distributed annually for education grants for children in grades K-12 who are active in their Catholic parish. In order to receive a grant, financial need must be demonstrated through a third-party application process. Individual student scholarship amounts depend upon the number of qualified applicants and the investment performance of the Bishop's Education Fund in any given year.
This grant program benefits Catholic students in grades K-12 attending eligible schools and registered in eligible parishes. The pastor's signature is required on the application form. Gifts to The Bishop's Education Fund can be made directly through our Office for Stewardship by calling 412-456-3085.
CREATING YOUR OWN NAMED FUND
A Named Fund can be created with a gift of $25,000 or more. Its purpose is to generate perpetual income for a specific purpose, which can be restricted or unrestricted. Such funds can be created in honor or memory of a loved-one and many people choose to create them to establish scholarships for needy students who attend our Catholic Schools. The Diocese offers a Named Fund Scholarship Template to offer guidance on how to create your own named fund.
Named Funds can be created during a person's life or by bequest after death. A popular funding tool for people over age 701/2 is the Traditional IRA Charitable Rollover. It enables people to make a gift during their lifetime that would normally be subject to multiple levels of taxation if it remained in their estate. Another way to fund a Named Fund is to convey ownership in a life insurance policy to the Diocese of Pittsburgh and restrict the death benefit or cash value to create your Named Fund, or contribute to another.