The Scholarship Fund of Alexandria
offers VDOE Tax Credits
The Scholarship Fund of Alexandria is one of the approved Neighborhood Assistance Programs (NAP) that receives an allocation of tax credits from the Virginia Department of Education (VDOE). The purpose of the NAP is to encourage businesses, trusts and individuals to make donations to approved 501(c)(3) organizations. In return for their contributions, these businesses, trusts and individuals who are domiciled in Virginia may receive tax credits equal to 65 percent of the donation that can be applied against their state income tax liability. For example, if you make a $5,000 donation to the SFA, you would receive a $3250 tax credit to pay your Virginia state tax bill.*
This is a tax credit, so it directly reduces the amount of tax you owe dollar-for-dollar as opposed to a tax deduction which reduces how much of your income is subject to taxes.
- The minimum contribution for eligibility is $500 for individuals and $616 for businesses.
- The tax credits are available for new donations only; they cannot be applied retroactively.
- The participating NAP organization must submit the donor’s taxcredit forms to the VDOE within 40 days of the individual’s/business’ donation date.
- Tax credits are limited by the VDOE and operate on a first come, first serve basis.
- Cash and stock donations are eligible to receive tax credits. For donations to Donor Named Scholarships, tax credits are eligible for gifts up to $20,000.
The following types of donations are not eligible to receive tax credits:
- Donations to scholarships that don’t have a financial need criteria
- Donations to or purchases of raffle/donate to win and drawing campaigns.
* Assuming a 35% marginal tax rate. Savings may be greater or less, depending on your rate. Please consult your tax advisor for specific information based on your tax situation. Any excess tax credit can be rolled forward and used by the donor for up to five years.
How do I apply for a tax credit?
Please call the SFA at 703.824.6730 or email [email protected] to inquire if tax credits are still available for the year, and if you would be eligible. You will fill out the appropriate Tax Credit Request Form (TCR) and return the completed form to SFA. SFA will submit the TCR to VDOE for review and will provide you with a tax certificate upon approval.
“As a small business owner this was a great way to support my local community,
and a smart business move. We get a solid tax benefit and
help send local kids to college. It really is a win-win.”
—Chris Wolz, Owner, Forum One, and longtime SFA supporter
“I feel good about helping a local student get to college. I donated and received
a tax credit through the Scholarship Fund. It was a quick and easy process
resulting in a savings on my tax bill.”
—Priscilla Goodwin, longtime SFA supporter and former Board of Trustees Chair
