
It’s graduation season, and that means education may be on your minds of your clients. The Tidewater Jewish Foundation (TJF) can help them make a difference in the lives of young people by funding education. TJF is an approved scholarship foundation under the Virginia Education Improvement Scholarship Tax Credit (EISTC) Program, which helps qualifying students from lower- and middle-income families attend local Jewish day schools. By participating in this program, donors can receive a 65% credit against their Virginia income tax. For example, a $10,000 gift can support local Jewish education and may have a net after-tax cost of less than 25 cents on the dollar. This is a powerful way to make a significant impact on education while also benefiting from tax incentives.
Tax credit-eligible donations require preauthorization, and those forms must be submitted as soon as possible to complete all donations in early June.
To assist with understanding the benefits of donating to TJF for the EISTC Program, the following simple illustration is offered:
DONOR TAX BENEFIT ILLUSTRATION:
Donation (Cash, or FMV of Marketable Securities) |
$10,000 |
Virginia EISTC (65% of donation as a credit to VA Income Taxes) |
- $6,500 |
Federal Tax Savings (24% charitable contribution of NET $3,500) |
- $840 |
Virginia Tax Savings (5.75% charitable contribution of NET $3,500) |
- $201 |
Total Tax Savings |
- $7,541 |
Net After-Tax Cost of $10,000 Donation to TJF |
$2,459 |
Important disclaimer in the above illustration: TJF offers the prior simple illustration for consideration by potential donors but does not offer specific tax advice. Interested donors are encouraged to consult with their professional tax advisors to confirm the applicability of any tax benefits unique to their specific situation.
“We are currently shy of donations by about $150,000 needed to fully fund this year’s scholarships,” says Naomi Limor Sedek, TJF president/CEO. "If our Jewish schools made their goals through this program for this academic year, what a difference that would make."
We look forward to helping you support education as a major area of charitable interest. And if there’s a graduation in your family this year, Mazel Tov!
For more information, contact Naomi Limor Sedek at 757-965-6109 or nsedek@ujft.org or Randy Parrish at 757-965-6104 or rparrish@ujft.org.