We can help you secure Virginia tax credits for your clients.
The Community Foundation of Harrisonburg & Rockingham County is an approved scholarship foundation for the Virginia Department of Education. We are authorized to accept donations for the state’s Education Improvement Scholarships Tax Credit Program. Before applying for tax credits for your clients or yourself, please contact us so we can help you adhere to state guidelines. Tax credits available through this program are updated by VDOE on a monthly basis.
As they invest in the future of Harrisonburg & Rockingham County, we provide your clients with expert advice.
Gifts to this program provide scholarships for qualified, low-income students at non-public K-12 schools in Virginia. Individual or business donors receive a state tax credit equal to 65 percent of the donation.
For individuals, the minimum donation is $500. The maximum donation for individuals and married couples is $125,000. There is no minimum or maximum limit for any business entity. Individuals can use the tax credits against their Virginia personal income tax liability. Businesses can claim the tax credits against:
- Virginia Corporate Income Taxes
- Virginia Bank Franchise Tax
- Virginia Insurance Premiums License Tax
- Virginia Public Service Corporations Tax
- Personal Income Taxes via pass-through entities such as S-Corporations, LLCs and Partnerships.
The amount of the tax credits may not exceed the donor’s tax liability for the year in which the credit is claimed, but tax credits may be carried over for up to five succeeding years.
In addition to a 65% tax credit, individuals and businesses may also receive a deduction for a charitable contribution. IMPORTANT: Clients should consult their tax advisors to determine specific tax savings.
Donations strengthen our community through scholarships for low-income students.
Donations through this program are used to provide scholarships for eligible students at approved non-public K-12 schools. Students must apply to their school for scholarship funds. The Community Foundation does not limit scholarships to students of one school. Current qualified schools are:
- Blue Ridge Christian School, Bridgewater
- Community School, Roanoke
- Cornerstone Christian School, Harrisonburg
- Eastern Mennonite School, Harrisonburg
- Front Royal Christian School, Front Royal
- Redeemer Classical School, Keezletown
- Warwick River Christian School, Newport News
Donors may not request that their contributions support scholarships at a specific school in Virginia. The funds will be used for eligible students at qualified schools. Donors may not designate funds for a specific student.
To be eligible for tax credits, donations must be made to the scholarship foundation, not directly to schools. At least 90% of donated funds must be used to provide scholarships. The foundation may take up to a 10% fee to cover the costs of administering the scholarship program. The Community Foundation of Harrisonburg & Rockingham County charges 5%.
We guide you through the process to secure Virginia tax credits for your clients.
Before applying for tax credits for your clients, please contact us so we can help you adhere to state guidelines for this program.
- Obtain a blank Preauthorization Form.
- Return the completed form to us and we will submit it by secure electronic system to VDOE for approval. Donors also may send the form directly to VDOE.
- Within 30 days, VDOE will send a Preauthorization Notice directly to your client indicating that tax credits have been approved. Those credits will be held for your client for 180 days. IMPORTANT: Do not write a check or transfer securities before receiving the Preauthorization Notice.
- Return the Preauthorization Notice with Part I filled out and signed along with a check or securities transfer information to us within 180 days of the date of the Notice. IMPORTANT: Checks must be dated and securities gifts must be initiated after the date of the Preauthorization Notice. Make checks payable to The Community Foundation of Harrisonburg & Rockingham County. Do not indicate a designation for a specific school. Funds are divided among eligible students at qualified schools.
- Within 20 days of receiving a gift, we will send your client a gift acknowledgement, send VDOE evidence that the donation was made and notify the designated school of the gift. Within 30 days of receiving notice of payment, VDOE will send a Tax Credit Certificate directly to your client. The Tax Credit Certificate must be attached to the tax return in which the credits are being claimed.