“Many parents cling to the promise in the Bible that says, ‘Train up a child in the way he should go, and when he is old he will not depart from it,” says Dale Twomley, principal and business manager at Shenandoah Valley Academy in New Market, Va.. “Adventist education is a big part of that training. Our schools work hard to provide a positive spiritual environment for students and studies show that those who attend Adventist schools remain members of the church by a wide margin. However, many families find it challenging to pay for Adventist education and cannot send their children without financial assistance from family members, their church or other means. We have the opportunity to dramatically expand the outside sources through this program.”
Donations to Potomac Education Foundation’s Virginia Education Improvement Tax Credits Scholarships Program provide scholarships for low-income new students. Individual or business donors receive a tax credit equal to 65% of the donation.
According to Seth Savoy, Foundation board member, the actual cost to donate to this program, after receiving tax benefits, is very minimal. “Donations are deductible against taxable income as a charitable donation on both federal and state income taxes, subject to rules governing deductibility of charitable contributions and can be made by check or stock transfer,” explains Savoy. “Donors also receive a tax credit against Virginia taxes equal to 65 percent of the amount of the donation.” As a result, one donor reports that his $10,000 gift that allows two students to attend C. F. Richards Junior Academy (Staunton Va.), only cost about $165 after the tax credit and deductions.
Donors can earmark their contributions to support scholarships at specific schools, but may not direct their funds to support a specific student. If, at school year’s end, there are excess scholarship funds at some schools, the excess will be distributed among the schools whose scholarship requests exceed donations earmarked for them.
- The minimum donation amount is $500. The maximum donation
amount for individuals and married couples is $125,000. There is no maximum limit for any business entity.
- Individuals can use the tax credits against their Virginia personal
income tax liability.
- Businesses can claim the Education Improvement Scholarships tax credits against:
- Virginia Corporate Income Taxes
- Virginia Bank Franchise Tax
- Virginia Insurance Premiums License Tax
- Virginia Public Service Corporations Tax
- Personal Income Taxes via pass-through entities such as S-Corporations, LLCs and Partnerships.
- The amount of the tax credits may not exceed the donor’s tax liability for the year in which the credit is claimed, but tax credits may be carried over for up to five succeeding years.
- In addition to a 65% tax credit, individuals and businesses may also receive a deduction for a charitable contribution, and therefore achieve tax savings:
- For the year of the donation, they may be able to take a deduction against taxable income as a charitable donation on both their federal and state income taxes.
- The tax reduction equals the contribution amount times the tax rate of the applicable tax (federal or state).
- Subject to rules governing deductibility of charitable contributions
- For the year of the donation, they may also take a credit against Virginia taxes.
- Tax reduction equals 65 percent of the amount of the donation.
- Credit is non-transferable.
For information please email email@example.com or (540) 886-0771.
IMPORTANT: Consult your tax adviser to determine your specific tax savings.
Potomac Schools in Virginia
K to 8th Grade
C .F. Richards Junior Academy
Desmond T. Doss Christian Academy
Manassas Adventist Preparatory School
Powell Valley Christian School (includes Pre-K)
Roanoke Adventist Preparatory School
Robert A. Lewis
Shenandoah Valley Academy Elementary School (includes Pre-K)
Stanley SDA School (includes Pre-K)
Tappahannock Junior Academy (includes Pre-K)
Tidewater Adventist Academy (includes Pre-K)
Tree of Life Christian Preparatory School (Grades k -8)
Vienna Adventist Academy (includes Pre-K)