Frequently Asked Questions
What is the ACSI CTF? Sponsored and coordinated by the Association of Christian Schools International (ACSI) Southeast Regional Office, the Children’s Tuition Fund (CTF) of Virginia is a scholarship program that provides tuition assistance for families with low to moderate incomes.
Where do the scholarship dollars come from? The ACSI CTF scholarship fund consists of tax credit contributions from Virginia-based corporations or businesses and individuals.
What is the EITC legislation? The Educational Improvement Tax Credit (EITC) Program legislation of 2012 established tax credits for Virginia-based corporations, businesses, and individuals that contribute to approved scholarship organizations. These tax credits can be applied to various eligible taxes.
What donations qualify? Individual donations must be at least $500 to qualify for the tax credit program and a maximum of $125,000 in a taxable year. This limitation does not apply to credits issued to any business entity, including a sole proprietorship.
Will 100 percent of my donation be used to provide scholarships? By statute, the ACSI CTF is required to disburse at least 90% of any donated amount for scholarships. While the ACSI CTF may retain up to 10% for administrative fees, the staff intend to limit administrative costs to 5%.
What are the tax savings? In addition to a 65% tax credit, individuals and businesses can also receive a deduction for a charitable contribution, and therefore achieve tax savings in two ways:
For the year of the donation, the donor may take a deduction against net income as a charitable donation on both their federal and state income taxes. The tax reduction equals the contribution amount times the tax rate of the applicable tax (federal or state).
The donor may take a credit against Virginia taxes. Tax reduction equals 65% of the amount of the donation. Credit is non-transferable. Credit may not exceed the tax liability but may be carried over for five succeeding years.