A tax credit recently made available by the state of Ohio will reduce state income taxes for people who wish to support Catholic education by contributing to diocesan schools to help families pay tuition.
The credit, part of the budget approved by the Ohio Legislature for the two-year period which began on July 1, is the latest addition to the state’s EdChoice Scholarship programs, which enable more Ohio families to be more active in their child’s education.
The program allows an institution to be certified by the state attorney general’s office as a Scholarship Granting Organization (SGO), making it eligible to receive donations for the purpose of providing need-based tuition assistance to families.
The Diocesan Education Corp. of the Diocese of Columbus was the first organization in the state to be granted SGO certification, receiving it on Dec. 7. As of mid-January, eight SGOs had been certified statewide, with four of them representing Catholic dioceses – Columbus, Cleveland, Toledo and Youngstown. SGOs must reapply every year to retain their status.
Beginning in 2021, people donating to an SGO for the purpose of tuition assistance are authorized to take a 100 percent state tax credit of as much as $750 per person ($1,500 for married couples filing jointly) for such donations in the year they were made.
Those who itemize deductions may still claim additional charitable donations on state and federal tax forms and receive the Ohio tax credit. Although the credit is limited to $750 per person, there is no minimum or maximum donation amount. No additional state or federal forms need to be filled out to indicate such gifts. The Office of Catholic Schools will send an acknowledgment of the gifts to donors in accordance with tax credit and charitable gift qualifications.
Tiffiney Hatem, who manages development for the Office of Catholic Schools, said that in the short period in 2021 when tuition assistance donations could result in tax credits, 60 families supported the SGO with approximately $70,000 in gifts. Donations made after Jan. 1 are eligible for credits for 2022.
“Our Catholic Schools in the Diocese of Columbus have made tuition assistance a philanthropic priority. This aid is what makes a high-quality Catholic education accessible and affordable for so many of our school families,” Hatem said. Each year, the diocese provides about $750,000 in tuition assistance to more than 2,000 families.
“The SGO can be a change agent for our families and schools. For many, it will provide access. For our supporters, it will allow them to guide some of their tax dollars while advancing a mission in which they believe” she said. “With more time, we will raise awareness of the SGO program which will directly equate to increased diocesan tuition assistance grants in future years.”
“The diocese already provides a substantial amount of tuition assistance,” said Seth Burkholder, Associate Director for Data Analysis in the Schools Office. “Donations to the SGO for that purpose will allow more of this money to be granted. We are really developing two arms of our tuition assistance model. One is the Diocesan fund currently in place, and now the newly created SGO fund. These funds will allow us to award financial assistance based on the varied needs of families.
“As more tuition assistance becomes available, it will allow different schools to focus on different needs, depending on what’s most important to them individually. This ties into the diocese’s Real Presence Real Future strategic planning process, in which parishioners are helping to reimagine what we do as a diocese so it can move forward to best serve its people.”
“Diocesan schools are forming their own strategic plan as part of the Real Presence Real Future initiative,” said Lori Dulin, Schools Office Associate Director for Marketing and Enrollment. “The plan will work in tandem with parish plans to ensure that the Catholic faith remains vibrant and alive in the diocese as it looks toward the rest of the 21st century.
“As part of the planning process, schools are looking at how they can maintain their Catholic identity and academic excellence while remaining sustainable and affordable. As the process continues, it’s likely that schools will respond to challenges differently based on their location and surrounding communities while keeping Catholic identity at the center of everything.
“Some of that is being seen now, with St. Mary School in Columbus’ German Village serving as regional governance model, while Newark St. Francis De Sales School is adopting a classical curriculum emphasizing the relationship between God and truth, beauty and goodness. I anticipate that other schools will choose additional models, focusing on what might set them apart.
“The diocese has nearly 17,000 students in 37 preschools, 41 elementary schools and 11 high schools in 15 of its 23 counties, and enrollment is growing,” Dulin said. “The Real Presence Real Future initiative has been the impetus for the faithful of our Diocese to help guide the presence of our faith for future generations. Our schools are an active partner in that as they are evangelizing by nature. The Catholic identity, excellence, and future of our schools are exciting and attractive to people, and that is helping to spur enrollment.
“Affordability is always a great concern of the schools, and the new tuition tax credit will give many more students, both Catholic and non-Catholic, a chance to benefit from a Catholic education. We don’t want a family’s financial struggles to be a roadblock, and the tax credit will help to lessen this burden for families.”
To donate, send a check made payable to Diocesan Education Corporation and mail to Office of Catholic Schools, 197 E. Gay St., Columbus OH 43215. Donors will receive documentation of their donation based on the date gift is received.
The Office of Catholic Schools does not administer the SGO program, nor does it provide tax advice or credit eligibility. Please consult your tax adviser for more information.