Big Brothers Big Sisters is eligible to receive corporate support through the Educational Improvement Tax Credit/Educational Improvement Organizations (EITC/EIO) program. Administered by the Department of Community and Economic Development (DCED), EITC provides large tax breaks for qualified businesses to fund innovative education programs.
Thru EITC, businesses may receive tax credits equal to 75% of their contribution up to a maximum of $750,000 per taxable year. If a business commits to donate the same amount for two consecutive years, they receive credits equal to 90% of their contributions. Tax credits may be applied against the tax liability of a business for the tax year in which the contribution is made. Since donations are made to a 501(c)3 organization, they are deductible on federal tax returns as well.
Who Qualifies for EITC Contributions?
Businesses in Pennsylvania that pay any of the following taxes qualify to participate in the EITC program:
- Corporate Net Income Tax
- Capital Stock and Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
EITC tax credits are given out on a first-come, first–serve basis, and once the designated amount is gone, it’s gone, so act quickly! The applications process opens on July 1 for first time contributors.
In 2-3 weeks, if funding is still available, you will receive an award letter, allowing your company to give EITC donors to Big Brothers Big Sisters. Your company then has 60 days from the date your award letter was issued to make a contribution to Big Brothers Big Sister, an approved EIO.
After receiving a contribution, Big Brothers Big Sisters will provide your company with a contribution receipt, which you submit to DCED within 90 days from date of award letter.
Now is the time to consider registering for the EITC program and secure your EITC tax credits to support Big Brothers Big Sisters mentoring programs. Please contact our Development Department by calling 717.236.0199 or email firstname.lastname@example.org
Information available on the PA Dept. of Community and Economic Development website newpa.com/EITC.
How do EITC Funds Benefit Big Brothers Big Sisters?
Big Brothers Big Sisters is approved to utilize EITC/EIO funds to support our Bigs in Schools Programs. EITC contributions provide funding that allow high school students to serve as mentors to elementary and middle school students within their District. Bigs in Schools programs are in Districts in Cumberalnd, Dauphin and Lebanon Counties. As with all matches, these matches between high school Bigs and their Littles are provided professional support and guidance by our match support staff (case managers).