Scholarship Foundation

The Mission

The Mission of the Diocese of Scranton Scholarship Foundation is to provide tuition assistance to families who desire a Catholic education in Diocesan schools and to accomplish this by inviting the Business Community within the eleven counties of the Diocese of Scranton to participate in the Educational Improvement Tax Credit Program offered by the state of Pennsylvania.

How Can Your Business Help?

Pennsylvania Corporations may take advantage of the Educational Improvement Tax Credit Program (EITC) offered through The State of Pennsylvania’s Department of Community and Economic Development (DCED), which allows businesses to make donations to eligible scholarship organizations such as The Diocese of Scranton Scholarship Foundation.

(Full information and applications may be found by logging onto the DCED website. A Step-by-Step Guide for Accountants: Understanding the Educational Improvement Tax Credit Program is also available).

The EITC Process: How to become approved:

1. Fill out the application on the DCED website above.
2. The business then receives a letter of approval from DCED for participation.
3. The business submits their monetary contribution within sixty days to the Diocese of Scranton Scholarship Foundation.
4. The Diocese provides the business with an acknowledgement of the contribution.
5. The business submits the acknowledgement to DCED.
6. DCED communicates with the PA Department of Revenue and applicable credit is applied to business tax account. A notice is provided to the business.
7. Credit is applied as if paid at the beginning of the tax year.
8. The credit is taken as a payment of taxes on the businesses annual tax return filing.

This entire process must take no less than ninety days.

What Businesses Qualify?

Businesses that pay any of the following Pennsylvania State Taxes may apply for tax credits through the EITC program:

• Corporate Net Income Tax
• Title Insurance Company Shares Tax
• Capital Stock and Franchise Tax
• Bank and Trust Company Shares Tax
• Insurance Premium Tax
• Mutual Thrift Institutions Tax
• Personal Income Tax of S corporation shareholders or Partnership partners.

Your Business Can Help Build the Future!

The generosity of the corporations who contribute to the Diocese of Scranton Scholarship Foundation enables many families to exercise choice in the education of their children. Many parents desire that their children be educated in a strong academic environment where Catholic Faith is greatly

enhanced. Unfortunately, financial stress eliminates this option for some. The support of corporate contributions through the EITC program allows this choice to become a reality.

How Are The Awards Made?

The Diocese of Scranton Scholarship Foundation awards families most in need of financial assistance first. Private School Aid Service, a Lakewood, Ohio company that specializes in financial aid programs, evaluates all applications. Using objective criteria, the applications are ranked according to need within each school based on a formula that utilizes financial information provided by the applicants. Awards are then made based upon the rankings and amount of scholarship money available in each school.

Parents will be eligible for aid if they are residents of Pennsylvania and their children are enrolled in a K-12 or Pre-K school in Pennsylvania which is eligible to receive donations from Pennsylvania corporations under the Educational Improvement Tax Credit Program. State income guidelines set household income limits at $50,000 with an income allowance of $10,000 for each additional dependent.

How Many Families are Helped?

Each year more than 1000 families receive tuition awards from the Diocese of Scranton Scholarship Foundation which is funded exclusively from business contributions under the EITC program.

How Does The Tax Credit Program Work?

Grades K through 12: A tax credit of 75% of Pennsylvania State Taxes is granted for a one year commitment. A 90% tax credit is granted for a two year commitment. The maximum is $200,000 per year per corporation. All donations up to the maximum amount are accepted.

Pre-K: A tax credit of 100% for the first $10,000 of contribution to an eligible organization is granted to a corporation regardless of the number of years applied for. A 90% tax credit is granted for the remaining contribution up to a maximum of $100,000 per corporation.

Bishop Joseph C. Bambera, D.D., J.C.L. commends all those who have contributed through the Educational Improvement Tax Credit Program: “We are grateful to all those who make a financial investment in Catholic education through support of scholarships,” said Bishop Bambera. “There is a cost to providing an outstanding education within the teachings of the Catholic Church. We are grateful for friends who help us make Catholic education an affordable option for our families. As pleased as we are for current support and all it does, we realize that this generous funding does not meet the needs of all our families. This is a great opportunity for nearly every business to make a difference in our schools and the next generation’s education.”

Your Contribution

Your contribution to the Diocese of Scranton Scholarship Foundation will enable more parents to take advantage of Catholic Education. In doing so, you may take pride in knowing that your company has made a contribution that has helped many families and their children in such a positive way.