We at Lancaster Mennonite are proud to announce that we have been approved to receive Special Purpose Entity (SPE) program through the Penngift Foundation. Please read on to find out how you can turn your PA Income Tax to provide need-based financial aid to Lancaster Mennonite students.
A Special Purpose Entity is a pass-through partnership established solely for the purpose of making contributions to schools through Pennsylvania’s Educational Improvement Tax Credit (EITC) program and distributing the tax credits received to its members. You are now able to designate up to your full individual or business State Income Tax to Lancaster Mennonite while receiving 90% of this amount back as a tax credit.
The Penngift Foundation has been advocating on behalf of Lancaster Mennonite and was approved by the PA Dept of Community & Economic Development to allocate at least $240,000 in EITC credits through the PA state approved SPE process during a limited window of opportunity during the month of November, no later than December 1, 2022.
Penngift has tuition scholarship tax credits available for Lancaster Mennonite that will be distributed on a first-come first-served basis.
Who can give?
Any Individual or couple who pay PA Personal Income Tax. You do not have to own a business. For individual filers or couples filing jointly who work only for nonprofits, see additional information below.*
As much as you or you and your spouse will pay in PA personal Income tax in 2022 or as much as your business pays to PA. You can donate less than this amount, but not more, to qualify for the 90% credit rate. The minimum donation is $500. Your commitment is for this tax year only, 2022. However, you will be given priority for participation again in 2023. (Penngift charges a 10% processing fee to recipient schools).
Is it Difficult to Donate?
No. Simply click on and complete the one page joinder form attached here and mail this form with your check (made out to PENNGIFT SPE 2 LLC) to the address listed on Joinder.
The sooner the better. Tax Credits are awarded by Penngift on a first-come first-served basis until all are gone. Submission by DECEMBER 1, 2022 will ensure Lancaster Mennonite as the recipient of allowable in SPE funding.
What is the impact?
The funds that you contribute to Lancaster Mennonite through SPE will be used to provide need-based financial aid to LM students. For example, for a qualifying donation of $2000, you will receive a tax credit of $1,800. The cost to you will be $200, which qualifies as a charitable contribution. Penngift charges a 10% processing fee to the recipient school, which in this case will be $200. The remaining $1,800 will provide quality Christ-centered education to a Lancaster Mennonite student.
What if I have questions?
You can learn more information about SPE and the Penngift Foundation in their FAQs. If you have additional questions, please contact Luis Torres, LM Advancement Associate, at firstname.lastname@example.org or 717-740-2426. For questions about your individual tax situation, it is best to speak directly with an accountant or the person that helps you prepare your tax return.
*Individuals or Married Filing Jointly – Working for Nonprofits
For an individual or married couple filing jointly who work for nonprofits, the taxpayer must own PA stock. The most simple option is to purchase a minimum of one share of PPL stock. PPL’s investment page can be found here, and the page for purchasing the stock can be found here. The minimum purchase is $250 with an additional $2 processing fee. This process only takes a few minutes to complete.