Some questions have arisen as to whether the Children’s Education Initiative (CEI) will allow donors to allocate their donation to a particular school’s foundation. The answer is yes. For example, if you donate to the scholarship fund of Helias Catholic High School in Jefferson City, then 100% of your donation will be earmarked to provide scholarships for students to attend Helias. A person could donate 100% of their donation to a diocesan-wide foundation that provides assistance to Catholic school children throughout the diocese. Finally, a donor could allocate 100% of their donation to a foundation that provides assistance to a local public school. All of these donors will be able to claim a tax credit for 50% of the dollar amount of their donation.
Some may be confused because, prior to tax credits being allocated to local foundations, the Missouri Commissioner of Education will divide the total tax credits of $90 million available annually for three broad purposes: 50% for public schools, 40% for nonpublic school scholarships, and 10% for assisting special education programs. Foundations will apply within one of these three categories to market the tax credits locally. For example, a public school foundation will apply to market tax credits within the public school category.
Therefore the local foundation will be providing 100% of its assistance to its stated mission, such as providing scholarships to attend Helias Catholic High School. Furthermore, the donor can be assured that 100% of their donation will be used to provide scholarships to attend Helias Catholic High School.
Posted: November 15, 2013