The Alabama Accountability Act authorizes donation-funded scholarships for low income students to attend qualified independent schools. These scholarships are granted by specially created Scholarship Granting Organizations (or SGO) for the sole purpose of taking private donations and awarding them to low income students in schools that have qualified to receive funds directly from the SGO.
Holy Family Cristo Rey has this relationship with both the Alabama Opportunity Scholarship Fund & Scholarship for Kids, a Birmingham based SGO.
Under the AAA, Alabama taxpayers may claim a dollar for dollar credit against Alabama tax liability for donations to an SGO as follows:
Individual Taxpayers. Credit equal to total contributions made to an SGO in a taxable year, up to 50% of the taxpayer’s tax liability not to exceed $50,000 per individual taxpayer or married couple filing jointly.
Corporate Taxpayers (S Corps, C Corps, and Partnerships). Credit equal to total contributions made to an SGO in a taxable year, up to 50% of the taxpayer’s tax liability with no limit.
In effect, you can support Holy Family Cristo Rey students at no cost to you. In addition, because The SGOs are 501c3 organizations, you may receive additional benefit for the same donation. All donations must be made by December 31 of the current tax year. We urge you to talk with your financial advisors.