We can help you secure Virginia tax credits.
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, please call us or have your financial advisor contact us so we can help you adhere to state guidelines.
Your gifts serve our community and you earn a 65% state tax credit.
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.
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% state tax credit, individuals and businesses may also receive a deduction for a charitable contribution. IMPORTANT: Consult your tax advisor to determine your specific tax savings.
Your donation invests in the future of Harrisonburg and Rockingham County by providing 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. We do not limit scholarships to students of one school. Currently, the qualified schools we work with 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
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 walk you through the process, so you can maximize your tax credits.
Before applying for tax credits, please call us or have your financial advisor 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 ([email protected]) and we will submit it by secure electronic system to VDOE for approval.
- Within minutes of submission, VDOE will issue a Preauthorization Notice for you directly to The Community Foundation, indicating tax credits have been approved. Those credits will be held for you for 180 days. The Community Foundation will forward appropriate paperwork to you for signature. IMPORTANT: You may 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 your 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 and do not designate a specific school. Funds are divided among eligible students at qualified schools.
- Within 20 days of receiving your gift, we will send you a gift acknowledgement, send VDOE evidence that the donation was made and notify the designated school of your gift. Within 30 days of receiving notice of payment, VDOE will send a Tax Credit Certificate directly to you. You must attach the Tax Credit Certificate to the tax return in which the credits are being claimed.