Illinois enacted the Invest In Kids Scholarship Tax Credit Program in 2017. This program offers a 75 percent income tax credit to individuals and businesses that contribute to qualified Scholarship Granting Organizations (SGOs). The SGOs then provide scholarships for students whose families meet the income requirements to attend qualified, non-public schools in Illinois.
Donors interested in receiving a tax credit should register as soon as possible with mytax.illinois.gov. Interested donors should speak with their accountant, or contact Bob Venhousen. Also, this link provides a contribution example to illustrate the tax credit calculation.
Director of Advancement
TAX CREDIT SCHOLARSHIPS
The Tax Credit Scholarship will cover up to 100% of private school tuition up to a maximum of the average Illinois cost to educate which is roughly $13,000. Key information about the program and donating to these scholarships can be found below. Scholarship amounts vary according to family income. Refer to this chart which shows income levels by family size and the corresponding scholarship amounts. These guidelines will serve as a pre-qualification when applications open on January 9.
SCHOLARSHIP QUESTIONS AND ANSWERS
Did you know you may be eligible for a scholarship that covers your child’s full tuition? Right at the end of 2017 the state of Illinois passed the Invest in Kids Act. This is good news for Timothy families. The Invest in Kids Act authorizes $100 million dollars in scholarships to help parents afford to send their child to a private school like Timothy. Scholarships will cover from 50% to 100% of tuition — all you have to do is apply.
This sounds too good to be true! How does it work?
To put it simply, donors are now able to give to special organizations authorized under the Invest in Kids Act specifically to fund scholarships and receive a tax credit. That money is allocated to Timothy Christian students. Timothy Christian is specifically partnering with an organization called the Children’s Education Fund. The funds are capped and once they are gone, they are gone. That is why is it so important to apply for aid when the window for applications opens on January 9 at 10 am. You must apply for aid for each child.
My kids are currently enrolled at Timothy and I already receive financial aid. Should I still apply for assistance from the Children’s Tuition Fund?
Absolutely. First, the Children’s Tuition Fund may be able to offer you more financial support than Timothy Tuition Assistance. Depending on your income, up to 100% of your child’s tuition may be covered. Additionally, if Timothy does not have to award as many scholarship dollars to families in need, those valuable funds could be directed to other needy families. It is really a win-win for our families and students.
Is this for new families, too?
Yes! When you complete your enrollment forms, please apply for aid at the same time.
Will the program run out of money?
The program is only allowed to grant $100 million dollars in scholarships for all private schools in Illinois. It is also limited by how many dollars are actually directed by donors to specifically benefit Timothy. So, yes, there is a strong possibility that all available scholarship funds will be awarded. Scholarships will be awarded on a first come, first serve basis. That’s why it is so important for you to apply at 10 am on January 9.
I’m still nervous about not getting enough aid. What else can I do to ensure that my kids can enroll at Timothy next year?
In addition to applying to the Children’s Tuition Fund, you can also apply to Empower Illinois. In fact, we would strongly encourage you to do that, to ensure that you get every dollar for which you are eligible.
What about Timothy Tuition Assistance? Should we still apply for aid?
Our goal for the Timothy Fund remains the same. For decades generous donors have given to the Timothy Fund, which allows us to offer aid to families. So, yes, please apply for Timothy Tuition Assistance in addition to the Children’s Tuition Fund when you complete your enrollment forms. We realize this is a lot of paperwork. We want to make sure that you receive the appropriate amount of aid, so your kids can get down to the business of learning—after all that’s what we do best.
When can I apply?
It is very important that you apply as quickly as possible. All aid is given on a first come first serve basis. Applications will be time stamped down to the millisecond! You can apply here.
I need help! Who can I call?
We would love to help you apply. Please feel free to call or email our Business Office at (630) 833-4616
For more information:
DONOR QUESTIONS AND ANSWERS
Direct Your State Taxes to Timothy Christian Schools
In October 2017, the State of Illinois passed the Invest in Kids Act. This is good news for Timothy families. The Invest in Kids Act authorizes donations to be directed to organizations that grant scholarships to private schools such as Timothy. This is an impressive tax credit that directly benefits Timothy families. It’s a win-win.
This sounds too good to be true! How does it work?
To put it simply, donors are now able to give to special organizations authorized under the Invest in Kids Act specifically to fund scholarships and receive a tax credit. That money is allocated to Timothy Christian students. Timothy Christian is specifically partnering with an organization called the Children’s Education Fund.
My state tax liability is $5,000 dollars. How much do I have to give to eliminate it?
You will receive 75 cents back for every dollar you donate. So to eliminate a $5,000 tax liability you would need to donate $6,660. You will receive $5,000 back, plus help fund a students’ Timothy tuition. Click here for a helpful contribution summary.
Can I direct the money to a certain student?
No. Scholarships are needs based and awarded on a first come first serve basis.
What about the Timothy Fund?
Our commitment to the Timothy Fund and our total fundraising goal remains the same. However, if students can receive aid from the Invest in Kids’ Act that frees up additional money to redirect elsewhere. It really benefits all of our students and families.
How do I make the donation?
You’ll need to take several steps to make a donation. But we will walk you through each step to make it as painless as possible.
Create an account on mytax.illinois.gov. In order to create an account you will need a “Letter ID”. You can request one by choosing “Individuals” and then under “Miscellaneous” click “Request a Letter ID”. A paper letter with your ID number will be mailed to you, this may take up to 5 business days. Then go back to mytax.illinois.gov and create your account.
Inside your MyTax Illinois account you will need to request a Contribution Authorization Certificate. You will need to click on your “Individual” account. Then in the list under “I Want To” you will click “Contribute to Invest in Kids.” The Illinois Department of Revenue will email you when your Contribution Authorization Certificate (CAC) is available to be downloaded from your MyTax Illinois account. Be patient—this might take several days. The certificate will be available under the correspondence tab in your account. The certificate will expire 60 days after it is issued.
Now that you have a certificate, go to the Children’s Tuition Fund at the Association of Christian Schools International website, www.acsi.org/ctfil. Select the option to Give Now, and Specify the Children’s Tuition Fund of IL. You will need to upload an image of your certificate and indicate whether you are contributing as an Individual or corporation. If you check Individual, you may choose to give to the General fund or to a Designated School. Please choose Designated School and select Timothy Christian Elementary/Middle School, or Timothy Christian High School.
CTFIL will issue you a donation receipt which you will use to claim your 75% tax credit when you file your 2018 IL income tax return.
Still confused? Call the Business Office at 630.833.4616. They can walk you through step by step.
How many people can donate?
The state has capped yearly contributions to the Invest in Kids program at $100 million. This means once individuals or companies have made $100 million dollars in contributions, the program will no longer accept donations for the rest of the year. So to ensure that you receive the tax credit, you should donate as soon as possible.
Individual and corporate donors may receive a credit for their Illinois state taxes equal to 75 percent of donations to an SGO.
- A taxpayer donates $10,000 to an SGO; they are eligible to claim a $7,500 tax credit on their 2018 taxes.
Tax credits are capped at $1 million per taxpayer per year; a donor can contribute about $1.33 million to receive the maximum tax credit allowed. Donors cannot receive a federal deduction for gifts made through this program, but the net tax benefit to all donors is expected to be greater than ordinary charitable donations of an equal amount. Total tax credits are capped at $75 million per year statewide, which equates to $100 million in donations and scholarships. Please consult a tax professional to determine how such gifts will affect tax liability.
Timothy Christian Schools has partnered with The Children’s Tuition Fund (CTF IL), an independent 501(c)(3) non-profit SGO responsible for serving many of the participating Christian schools statewide. CTF IL handles all three steps of the SGO process from initial contribution to grant distribution.
- Processing donations from individuals and corporations
- Accepting scholarship applications from students/families – website to go live in early January, applications for scholarships cannot be submitted until January 9.
- Distributing scholarships for eligible students/families to their chosen school in accordance with the law
For more information please explore these links:
You can direct your state income tax.
Have you heard of the Invest in Kids Act and the private school scholarships that result?
You can direct your individual or corporate state income tax liability by making a charitable donation to a state-certified scholarship organization. The Children’s Tuition Fund of Illinois (CTF IL) is the scholarship organization Timothy Christian has partnered with to help place underprivileged students in our school!
Until recently, Illinois residents had little control over how their tax dollars were distributed. However, in August 2017, the Illinois Legislature passed Senate Bill 1947, allowing individuals and corporations to direct up to $1,000,000 of their state income tax liability. Now, for example, taxpayers can secure credits of $7,500 by sending $10,000 to a state-certified scholarship-granting organization like CTF IL.
CTF IL makes sure your charitable donation is recognized by the Illinois Department of Revenue and that you, the donor, receive a tax credit for that donation. Also, when you make your Individual gift to CTF IL you can designate the funds for the sole benefit of eligible Timothy Christian students.
To help you take advantage of these credits, CTF IL will create a step-by-step donor manual which walks you through the entire donation process. Visit childrenstuitionfund.org to learn more.
Donors will need to register their contributions with Illinois in order to receive a tax credit. You can login or sign up to do so at this address. https://mytax.illinois.gov/_/
For more information contact Bob Venhousen at firstname.lastname@example.org / 630-782-4072.
CHILDREN’S TUITION FUND 731 Chapel Hills Drive, Colorado Springs, CO 80920 www.childrenstuitionfund.org Questions? Please call or email John Wilson Office: 719.867.0125 • Mobile: 719.494.3392 • John_Wilson@acsi.org