Frequently Asked Questions

You can apply for credits through The Friends Collaborative at any time during the year. When credits are available, TFC can process your contribution immediately. Otherwise, you can be placed on a waitlist for credits when they become available. Typically there are two times of the year when credits are made available by the State: Fall (Sept.- Nov.) and late Winter (Feb.- April).

The minimum participation amount is $3,000 annually, for 2 years. (This is equal to $2,700 in PA tax liability, or roughly $100K in income.)

Variable tax liability should not be an obstacle to EITC program participation with TFC. You can choose a participation amount that you are comfortable committing to for 2 years, arrange with TFC for differing participation amounts in year 1 and year 2, or ask TFC about the availability of 1-year credits.

The following Pennsylvania taxes, due from individuals or businesses, are eligible: 

• Personal Income Tax (of employees, shareholders, or partners of corporations or partnerships)
• Corporate Net Income Tax
• Capital Stock / Foreign Franchise Tax
• Bank and Trust Company Shares Tax
• Title Insurance Companies Shares Tax
• Insurance Premium Tax
• Mutual Thrift Tax

For individuals working for a non-profit, as long as one spouse has a source of income that is generating PA tax liability that is not through a non-profit, then the entirety of your liability is eligible.

An EITC contribution cannot be considered a charitable contribution.  Because you are joining a pass-through LLC and receiving a 90% tax credit in return, you are not making a direct gift to a non-profit organization. However, the 10% of your contribution that is not eligible for a PA tax credit may be eligible on federal taxes as a charitable contribution if your itemize your deductions.

Yes, when you when you fill out the questionnaire in our secure online portal, you will specify which school or schools will receive your donation. Alternatively, you may choose for your contribution to be distributed equally among all member schools. 

Member schools of The Friends Collaborative have created a progressive sharing model, to support all member schools and provide as many scholarship opportunities as possible. The school/s you have chosen will receive no less than 90% of your donation directly, and a portion will be shared among all member schools. Please note that every dollar of your contribution directly funds student scholarships. 

The Friends Collaborative is proud of the fact that 100% of your contribution supports need-based scholarships. To fund operations, TFC relies on dues from member schools and generous in-kind donations of services.  If you are interested in donating your skills to support the work of The Collaborative, please contact us at info@thefriendscollaborative.org.

It is not possible to donate to specific students. Each school determines how to disburse funds received according to its financial aid policies.

As long as you or your spouse have any other source of income that is generating PA tax liability not through a non-profit, then the entirety of your liability is eligible. See our Donation Overview page for all eligible income.

Refunds are largely dependent on the timeliness of filing your tax returns and the efficiency of the PA Department of Revenue. Refunds for tax credits typically come 6-12 months after you file the PA tax return for your contribution. This means that, in many cases, EITC participants need to make your year-2 contribution before receiving your year 1 refund.

A donor’s commitment ends after two years. However, TFC will reserve credits for returning participants, who will be invited to re-join the program for another 2 years. TFC encourages existing donors to continue supporting need-based scholarships with The Friends Collaborative through the EITC program.

The Friends Collaborative and Friends Council on Education strongly believe in public education. EITC funding has absolutely no bearing on the funding of public schools.

Public schools receive funds from the PA Department of Education. The EITC progam is administered by the PA Department of Community and Economic Development (DCED) and is not funded by taxpayer dollars. As a tax credit program, the state is simply agreeing to forego a given amount of tax revenue in exchange for participation in the EITC program.

You are eligible if you have a PA tax liability of at least $2,700 (for a minimum participation of $3,000), with at least one spouse generating income through a for-profit company or other source of income, i.e. rental income, stock, etc. (See our eligible income list for more details) 

The Development officers at our Member schools and Affiliate schools are happy to discuss any of your questions. TFC staff is also available; click here to contact us now.