Change the lives of children and families in your community by repurposing your tax dollars to support scholarships for Nazareth Prep students. Multiply your impact with a tax credit equal to up to 90% of your donation.
Since 1900, children and families in Western Pennsylvania have benefited from the work of Holy Family Institute and the Sisters of the Holy Family of Nazareth. HFI’s community offices serve families in schools and neighborhoods with the most need.
Nazareth Prep is an independent Catholic high school for families who cannot afford traditional, private education. The school serves students of all faiths and backgrounds with a focus on academic excellence.
Tax Credit Programs for Corporate Donors
What is it?
The Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs provide tax credits to eligible businesses contributing to scholarships for private school students.
Tax credits may be applied to the business' tax liability for the year in which the donation was made. The credits are equal to 90% of the contribution for businesses making a two-year commitment or 75% for those making a one-year commitment.
Who benefits?
Nazareth Prep is an independent Catholic high school in the Pittsburgh area. The school provides a unique and innovative college and career-focused education to students of all faiths. Most students come from low-income families and reside in a low-achieving school district.*
*A low-achieving school is defined as a public school ranking in the bottom 15% of Pennsylvania schools based on combined math and reading assessment scores.
Which businesses are eligible?
Eligible businesses are those authorized to operate in Pennsylvania who are subject to at least one of the following:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance and Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
When are applications due?
May 15
- Applicants who have fulfilled their two-year commitment and wish to reapply for the next fiscal year.
- Businesses who are in the middle of their two-year commitment.
July 1
- First-time applicants and those wishing to submit an additional application on top of their previously submitted two-year commitment.
How do I get started?
The State Department of Community & Economic Development has created a Business Application Guide to help those wishing to become a tax credit donor. Applications are processed on a first-come, first-served basis, so it is recommended that you apply as close to the deadline as possible.
If you have questions, please contact Susan Neszpaul, Executive Vice President of Philanthropy, at 412-239-9014 or neszpaul.susan@hfi-pgh.org.
This information is not intended to serve as legal or tax advice. Please consult your financial or tax advisor.
Tax Credit Programs for Individual Donors
What is it?
Pennsylvania tax credit programs provide personal tax credits to individuals contributing to scholarships for private school students. Funds must be contributed through a state-approved Scholarship Organization, such as the Youth Employment Scholarship (YES) Fund, LLC. The YES Fund supports scholarships for students at Nazareth Prep.
To contribute, an individual or couple makes a two-year commitment to receive a 90% credit against their Pennsylvania income taxes—the equivalent of donating one dollar at the cost of 10 cents!
Who benefits?
Nazareth Prep is an independent Catholic high school in the Pittsburgh area. The school provides a unique and innovative college and career-focused education to students of all faiths. Most students come from low-income families and reside in a low-achieving school district.*
*A low-achieving school is defined as a public school ranking in the bottom 15% of Pennsylvania schools based on combined math and reading assessment scores.
How does it work?
- Individuals must be an employee, owner or shareholder of a company authorized to do business in Pennsylvania. Retirees with a PA personal tax obligation are also eligible. When applying jointly, one spouse must qualify. Businesses organized as S-Corp, LLC or Partnerships are eligible to participate in the YES Fund.
- Qualifying individuals or couples must have a personal annual PA income tax obligation greater than $3,150 and must donate a minimum of $3,500 in a single payment to the YES Fund.
- The maximum amount of your contribution is limited by your PA income tax obligation.
- Participants complete a joinder agreement showing a two-year financial commitment to the YES fund.
- The YES Fund receives tax credits from the state each fall. At that time, members are notified that their contribution is due within 30 days.
- Participants receive a Form K-1 in February of the following year as proof of the donation. This form is filed with the appropriate PA income tax forms to receive the 90% credit.
How do I get started?
Contact Susan Neszpaul, Executive Vice President of Philanthropy, at 412-239-9014 or neszpaul.susan@hfi-pgh.org for more information or to request a copy of the YES Fund materials.
This information is not intended to serve as legal or tax advice. Please consult your financial or tax advisor.
