What is an SGO?
Evansville Day School encourages donors to take advantage of an incredible tax savings opportunity. In the state of Indiana, tax credit scholarships are awarded by Scholarship Granting Organizations (SGO) to mission-appropriate students to help them afford private education. (This is not part of the School Choice vouchers). In fiscal year 2016-2017 (July 1, 2016 – June 30, 2017), $9.5 million in tax credits will be allocated by the Indiana Department of Revenue for this amazing program.
How does it work?
Individual or corporate donors who give to Day School through the SGO during this period, will receive a 50% tax credit on the donated amount against their state tax liability. In addition, donations are also eligible for federal tax deductions on the net amount, after the credit is applied. There is no limit to the amount that can be donated under the $9.5 million cap.
Day School applies your SGO donation towards the school’s operating fund (Annual Fund) to offset the cost of financial assistance given to SGO-qualifying families.
Here’s an example of how it works at the $5,000 level:
- $2,500 (Indiana state tax credit)
- $825 (Federal savings on the net amount @ 33% tax bracket)
Total out-of-pocket = $1,675
(See the chart for other examples of tax savings at different levels of giving).
How does my donation to SGO benefit my Day School student?
Day School is committed to helping every mission-appropriate family afford an education regardless of their income. Supporting the SGO program benefits every student because it provides additional revenue to the school, freeing up other resources that can be reallocated to strengthen programing, student activities, technology, facility enhancements, faculty salaries, and so much more! For more information, contact Leah Whitaker, Director of Advancement: email@example.com or call (812) 476-3039 ext. 275.