Foundation for Catholic Education Catholic School Tuition Care

Foundation for Catholic Education Catholic School Tuition. Care St. Agnes Catholic School 2019

Mission of the Foundation Ø Support and enhance: § Catholic Education in the Archdiocese of Philadelphia. § Support the County Advisory Councils Ø Our goal is to leverage the EITC and OSTC programs, allowing us to maintain and increase the enrollment at all the Elementary and High Schools. Ø To achieve our goal, the successful solicitation, communication and distribution of EITC and OSTC funding is critical to the Catholic Schools in the Archdiocese of Philadelphia. 2

EITC / OSTC / Other Distributions to Schools $3 500 000 $3 150 000 257% Increase in One Year! $3 000 $2 500 000 $2 000 Start of the SPE’s $1 500 000 $1 225 000 $1 125 000 $881 550 $1 000 $500 000 $470 000 $179 000 $547 000 $185 000 $0 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19

Tuition. Care 4

If you could help reduce tuition at your school by $1, 000 per family, would you do it? Here’s how easy it is! Join Tuition. Care! 5

What is Tuition. Care? Ø Tuition. Care is a new groundbreaking program that is being developed by the Foundation for Catholic Education and in collaboration with the Executive Board of Elementary Education (EBEE) and the Chester County Advisory Council. o The Foundation, whose mission is to support Catholic education, has provided over $4. 5 M to our Catholic elementary schools over the last 8 years. o Our goal is for all families to have access to a high quality Catholic education at an affordable price! 6

What is Tuition. Care? Ø The new Tuition. Care program, launched at the Parish/Regional school level, will combine EITC / OSTC tax credits offered by the State of PA with a Tuition Reduction Grant (TRG) offered to the local Parish / Regional school. Ø Tuition. Care is aimed at significantly increasing participation in the EITC / OSTC Special Purpose Entity (SPE) programs by creating a financial benefit to the Parish / Regional School through the issuance of a Tuition Reduction Grant which will benefit all St. Agnes School families. 7

Tuition. Care, it just takes a few easy steps! 1 Review your PA-40 Tax form to understand your current Tax liability. Ø o This amount (on line 12) represents the tax dollars you can redirect to the Foundation for Catholic Education to support Tuition. Care. 2 Join the Tuition. Care Special Purpose Entity (SPE) Ø o Sign a commitment form with your contribution amount. o No payment is required until the Tax Credit is approved by the state. 8

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Tuition. Care, it just takes a few easy steps! 3 The Foundation for Catholic Education submits the SPE Ø application to the State of PA on July 1, 2019. 4 The State of PA notifies the SPE of approval in the November 2019 Ø timeframe. o The Foundation will notify all SPE members of the approval status. o SPE Operational Agreement is signed. o If approved, SPE members remit their contributions to the SPE within 30 days. o If the SPE is not approved, the SPE members are not required to make the payment, the SPE may apply again the following year. 11

Tuition. Care, it just takes a few easy steps! 5 SPE members complete their PA-40 Tax form and enter their Ø EITC / OSTC tax credit (Found on Form K-1). o The Tax credit is 90% of the SPE members contribution as approved by the State of PA. o The Tax credit is a reduction in your PA Tax liability for 2019 (Line 23 of PA 40). 12

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Tuition. Care: Benefits to Saint Agnes School In summary… Ø With Tuition. Care the Foundation will issue a Tuition Reduction Grant (TRG) to St. Agnes School. o TRG = $1, 000 X the number of SPE Members from St. Agnes. Ø St. Agnes will apply the TRG as follows to effectively reduce tuition for all Saint Agnes school Families. o Tuition Reduction per family = Total TRG No. of 2019 School families Note: Tuition Reduction is capped at $1, 000 per School Family 14

Tuition. Care: Benefits to Saint Agnes 100% Participation, 200 Family SPE Example… Ø Families Enrolled at St. Agnes 200 Ø School families & Parishioners who join SPE 200 Ø TRG = $200, 000 (200 X $1, 000) Ø Reduction in Saint Agnes 2019 -20 Tuition: $200, 000 200 School Families Tuition Reduction per Family: $1, 000 15

Tuition. Care, it just takes a few easy steps! 75% Participation, 150 Family SPE Example… Ø Families Enrolled at Saint Agnes 200 Ø School families & Parishioners who join SPE 150 o TRG = $150, 000 (150 X $1, 000) Ø Reduction in St. Agnes 2019 -20 Tuition: $150, 000 200 School Families Tuition Reduction per Family: $750 16

Participation Example: Family Earning $100, 000 In summary, you have accomplished the following: Ø Contributed $3, 000 to the SPE and received $2, 700 in K-1 tax credits which is a redirection of your tax dollars to Catholic education. Ø Additionally, families receive a tuition reduction. Ø The following is an example of a family currently paying $3, 000 in taxes to the state. 17

100% Participation Example: Family Earning $100, 000 o Example below assumes 100% participation and a $1, 000 per family tuition reduction Total Family Savings: $700 18

St. Agnes 2019 Tuition Reduction Grant Each family received a reduction in their tuition for the 2018 -19 school year of: $365. 59 19

Additional Financial Benefits for School Families Ø The SPE families who are EITC / OSTC eligible may complete a FACTS application to receive EITC / OSTC tuition assistance from the Foundation & BLOCS. o FACTS information is kept confidential. o A family with one child earning approximately $100, 608 a year will qualify for some EITC / OSTC assistance through the FACTS process. o The earning threshold increases approximately $15, 608 per child o The Foundation encourages all families who may be eligible to apply. 20

Tuition. Care: Critical Dates 21

Tuition. Care Scenario: Excess Funds Distribution Parish Family Joins SPE 4 Parish / Regional Elementary School Tuition Reduction 1 SPE (Special Purpose Entity) 2 SPE Contributions Foundatio n Tuition Reduction Grants 3 for Catholic Education EITC / OSTC Funds 5 Distribute to Archdiocese of Philadelphia (AOP) Elementary Schools Supports AOP Catholic Elementary Schools Over $4. 5 Million distributed to Schools / Families in last 8 years 22

Thank you! 23