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Save on Taxes and Educate Children. We Make it Easy.
Education is a cornerstone of vibrant communities. One of The Community Foundation's strategies for preserving and growing the quality of life in our region is to strengthen access to quality education.
Give a deeper meaning to tax relief – save while supporting local students.
As an approved scholarship foundation, The Community Foundation can process 65% state tax credits on behalf of donors and issue scholarships for students in need.
How Does it Work? Here's an Example:
Jennifer and Zach are married, filing jointly, with taxable income of $165,000. They itemize deductions. Their donation of $10,000 through The Community Foundation helps low income k-12 students access quality education in regional independent schools, and costs them only $2,459 after receiving state tax credits and state and federal deductions.
IMPORTANT: Please consult your tax advisor to determine your specific tax savings.
| Donation | $10,000 |
|---|---|
| Virginia Scholarships Tax Credit (65%) | -$6,500 |
| Federal Tax Savings of charitable contribution (24% of $3,500) | -$840 |
| Virginia Tax Savings of charitable contribution (5.74% of $3,500) | -$201 |
| Total Tax Savings | -$7,541 |
| Net Cost of $10,000 Donation: | $2,459 |
How it Works - 2 Minute Video
This easy walk-through shows how tax-credit scholarship programs use entirely private funds to offer private school scholarships to families. Created by the Foundation for Excellence in Education.
How to Take Advantage of the Tax Credits Program:
- Simply contact Ali Thomas, Programs Manager.
Call Ali Thomas at 540-373-9292 or email scholarships@cfrrr.org. The foundation submits an online preauthorization request on your behalf. The Virginia Department of Education immediately approves your gift eligibility. (Unless an individual donor has already been preauthorized for the maximum $125,000 for the calendar year or the maximum of $25M in tax credits during the program year has been exceeded.) - Make your gift of cash, check, credit card or marketable securities to The Community Foundation.
- Receive your tax credit certificate.
The foundation will notify the Virginia Department of Education of your authorized gift. Once approved, The Community Foundation will issue a tax credit certificate directly to you.
Your gift helps children in need to access independent education at schools like Holy Cross Academy, Fredericksburg Academy and Fredericksburg Christian Schools.
As an approved scholarship foundation, The Community Foundation:
- Processes donor tax credits through the Virginia Education Improvement Scholarships Tax Credits program.
- Issues scholarships for students in need.
Your gift provides a tax benefit to you, along with the gift of a life-changing education for area students in financial need.
| Individuals | Businesses |
||
|---|---|---|---|
| $500 | $125,000 | $500 | Unlimited |
| Minimum donation | Maximum donation | Minimum donation | Maximum donation |
Save on State & Federal Taxes
Individuals and businesses can achieve tax savings in two ways - state tax credits and state and federal deductions:
- Apply your tax credits towards Virginia taxes you may owe.
- Tax reduction equals 65% of the amount of the donation
- Unused credits may carry over for up to 5 years.
- Deduct your charitable donation on federal and state income taxes.
- Subject to deductibility rules.
How is the Money Used?
Donated funds support scholarships for low-income pre-kindergarten and K-12 students at Holy Cross Academy, Fredericksburg Academy, Fredericksburg Christian Schools and more.
Children receiving these scholarships have a family income of less than 300% of the current poverty guidelines.
A donor is not permitted to designate a specific student to be the recipient of a scholarship.
To learn more or make a gift through this program, call Programs Manager Ali Thomas at 540-373-9292 or email scholarships@cfrrr.org.