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Tax Credit Scholarships – Donors

SB1947, also known as the Invest in Kids Act, includes a provision which creates a tax credit scholarship program. The program will allow individuals and corporations to donate to scholarship granting organizations (SGOs) and receive a credit on their state taxes in return. SGOs will then be responsible for granting scholarships to qualifying students. Individual donors may inform the SGO to restrict your contribution to St. Laurence High School. The tax credit scholarship program will run for five years through December 31, 2022.

Here is a basic overview of the program:

  • Beginning on January 2, 2018, individual and corporate donors may reserve tax credits on a Department of Revenue website.
  • Prior to reserving tax credits, all donors MUST register at www.mytax.illinois.gov. For step by step instruction on how to apply, please click here. Please do this ASAP as it will take up to two weeks for the state to mail you a “LetterID” which you will use to activate your account on the Illinois Department of Revenue website.
  • When you receive your “LetterID” via USPS, please follow these instructions to activate your account.
    Within 60 days, the donor must contribute the amount they reserved to an approved Scholarship Granting Organization (SGO). You may inform your SGO to restrict your contribution to St. Laurence!
  • St. Laurence has selected two preferred SGOs: Empower Illinois and the Big Shoulders Fund. You can learn more information about them by clicking on their respective links.
  • An individual or corporate donor will receive a 75% credit on their donation. (A $10,000 donation results in a state tax credit of $7500). Your SGO will issue proof of your donation that you will use to redeem your tax credit.
  • Donations are capped at $1 million. If the donor does not make their donation within 60 days or gives less than the amount of the tax credit they reserved, they will not receive any tax credit.
    A donor may not receive a federal tax deduction in addition to the state tax credit. As such we strongly recommend working with your personal tax professional for the best advice about your situation.
  • The tax credit may be carried forward for five years.
  • A $75 million annual tax credit cap has been established under the scholarship program; however $100 million will need to be donated to max out the cap. Many believe the credits will sell out quickly, perhaps in minutes as they have in other states that have offered similar programs.

How does this impact St. Laurence?

  • Per the bill, individual donors may direct their donation to a particular school and should you choose to participate in this program, we ask you to consider directing donations to St. Laurence.
  • Our donors are very generous. We ask that you use this strategy as an additional way to alleviate tax burden while supporting St. Laurence. We hope that our donors will continue to honor their annual fund and Defend the Glory campaign giving in addition to their participation in this program.
  • St. Laurence has families currently enrolled who would be eligible for a 100% scholarship and many others who would qualify for a partial scholarship. This would represent a new revenue stream to provide access to our enhanced learning environment for current STL families!
  • Our internal Financial Aid team will work with eligible families and assist them through the application process.
  • Student applications will open February 1, 2018.
  • All scholarship amounts awarded will be based on family size and household income
  • Families eligible for 100% funding would receive a grant in the amount of full tuition

Interested in donating? Questions about the program? Please contact Bob Hogan at 708.458.6900 extension 248 or via email at rhogan@stlaurence.com.

Additional Resources

TCS Information from the Department of RevenueSGO Information from the Department of Revenue