Prepare to FAX new Tax Credit Applications on Monday, July 2, 2007

Contributions and correspondence may be mailed to:

Second Century Scholarship Fund
124 Logan Boulevard
Hollidaysburg, PA 16648

Phone: (814) 695-5577
Fax: (814) 696-9516
E-mail: dhand@dioceseaj.org

Contact: Denise Moyer-Hand, Annual Funds Manager
Diocesan Development Office

Entering our Second Century…
In 2001 the Diocese of Altoona-Johnstown celebrated the first century of its establishment. 2001 also marked the creation of the Second Century Scholarship Fund for the purpose of accepting business contributions and distributing them to families in need.

Since 1840 our Catholic schools have instructed countless community leaders. A unique blend of Christian formation, community service, virtue, academics and discipline continue to be hallmarks of a Catholic education today.

Your support of Catholic education through this unique program will help ensure that tomorrow’s leaders will experience a well-grounded, holistic education today.

Upon approval from the Commonwealth, a business will receive significant tax credits by contributing to an eligible scholarship organization such as the Second Century Scholarship Fund. This nonprofit fund is exempt from taxation under section 501(c)(3) of the Internal Revenue Code, and is independent of the Diocese of Altoona-Johnstown.

How does the program work?
In 2001 the state legislature established the Educational Improvement Tax Credit (EITC) for the purpose of awarding tax credits to businesses who contribute to eligible scholarship organizations for grades K-12. The Pre-Kindergarten Tax Credit (PKTC) was initiated several years later. Both programs are administered by the PA Department of Community and Economic Development (DCED).

Does my business qualify?
Any company doing business in the Commonwealth that is subject to the following taxes may be eligible to apply for EITC tax credits:

Capital Stock Franchise Tax
Corporate Net Income Tax
Bank and Trust Company Shares Tax
Title Insurance Company Shares Tax
Insurance Premiums Tax
Mutual Thrift Institutions Tax

What is the maximum credit my business can receive?
If a business agrees to make the same contribution to an organization for two consecutive tax years, it may earn a credit equal to 90% of its contribution, up to a maximum of $200,000 annually. (To earn the maximum tax credit, a business would have to contribute $222,222 in each of the two years). For a one-year commitment, a business may earn a 75% credit, with a maximum of credit of $200,000 annually (i.e., to earn the maximum credit, a business would have to contribute $266,667 annually). For PKTC, a business may earn a 100% tax credit on the first $10,000 donated and 90% beyond that amount.

When can I apply to the DCED for tax credit approval?
Participants may submit an application to the PA DCED anytime on or after July 2, 2007. We ask interested businesses and corporations to please apply to the DCED on July 2 – as tax credits are available on a first-come basis and have gone very quickly in recent years. For example, the tax credits for the 2006-07 fiscal year were exhausted with barely more than one day of applications.

Who do I help with a contribution to the Second Century Scholarship Fund?
You help children enrolled in pre-kindergarten and/or kindergarten through 12th grade in one of the Catholic schools located in Blair, Bedford, Cambria, Centre, Clinton, and Somerset counties. Maximum family income is $60,000 for a family with one dependent child. The maximum increases $10,000 for each additional dependent member of the household. For example, a family with four dependent children and income of $90,000 or less would be considered eligible under state guidelines.

Our Catholic schools have strong academic & community values and challenge students to achieve their potential with greater results. Their mission is to educate the mind, heart, body and soul of each student as they journey through their formative years.

What Is the Process for Businesses to Receive the Tax Credit?
Businesses must apply to DCED for the tax credit. If the charitable organization is listed with the department and there is money available through the program tax credits will be awarded on a first-come, first-served basis. After approval, businesses must make their contributions within 60 days.

How to Contribute to the Second Century Scholarship Fund

(1) Visit the PA DCED web site at www.newpa.com [Search: “Educational Improvement Tax Credits”]

(2) Download “Guidelines and Application for Business Firms” (PDF file).

(3) Complete the one-page EITC and/or PKTC program application (Appendix 1).

(4) Indicate the amount of your gift for scholarship organization(s).
[You do not need to make a specific reference to the Second Century Fund on your application.]

(5) FAX your application to the PA DCED anytime on or after July 2, 2007.

Once you receive written approval from the DCED, you have 60 days to contribute to the Second Century Fund (124 Logan Blvd., Hollidaysburg, PA 16648)

The Second Century Fund then acknowledges receipt of your contribution.

After receiving our acknowledgement, you would send a copy to the DCED which informs the Department of Revenue of your participation in the EITC and/or PKTC program.

Eligible families are given the opportunity to fulfill their dream of giving their children a Catholic education.

For More Information

Please contact Denise Moyer-Hand in the Diocesan Development Office for additional assistance at either (814) 695-5577 or dhand@dioceseaj.org.

Contributions outside of the Pennsylvania Educational Tax Credit program are also welcomed. Charitable gifts made to the Second Century Scholarship Fund are tax deductible to the extent permitted by law.