What is a Scholarship Granting Organization (SGO)?
It is a religious or nonprofit organization exempt from federal taxation whose primary intent
must be to award academic scholarships to low-income students to attend schools in grades K thru 12. The Diocesan Education Corporation (DEC), a scholarship granting organization (SGO), is doing business as Emmaus Road Scholarship Fund.
What is the benefit of an SGO?
The State of Ohio enacted legislation allowing a tax credit up to $750 per individual or $1,500 for married couples filing jointly for donations made to certified scholarship granting
organizations. This credit is available to individuals who have an Ohio tax liability. The credit is
a dollar-for-dollar credit, but is limited to the lesser of: 1) $750 per individual; or, 2) $1,500 for
married couples filing jointly; or, 3) your total tax liability.
How does a tax deduction differ from a tax credit?
A tax deduction reduces a taxpayer’s overall taxable income. A tax credit is a dollar-for-dollar
credit against the taxes paid to the State of Ohio up to the limits allowed by the credit. All SGO donations are directed to the Emmaus Road Scholarship Fund rather than to the State, and can be designated for the school or parish of your choice.
Can I direct my donation to both St. Charles and to another school or parish?
Yes. Donors have the option of designating more than one school or parish to receive their donation. In either case, prioritization of awards will go to low-income students.
Can I direct my donation to a specific student?
No. As a 501(c)(3) organization, the Emmaus Road Scholarship Fund may not accept donations that are designated for a specific student.
Is my donation limited to $750 per individual?
No. Any donation may be made, but the tax credit available through the State of Ohio is
limited up to $750 for an individual or $1,500 for married couples filing jointly.
What St. Charles students are eligible to receive an award through the Emmaus Road Scholarship Fund?
While all students who attend St. Charles are eligible to receive an award, prioritization will be given to low-income students.
I received a refund on my State of Ohio taxes last year. Am I still eligible for an SGO tax credit?
Yes. The scholarship granting organization tax credit applies to the State of Ohio tax liability.
The liability is calculated before credits are applied for withholdings made by your employer or before applying other tax credits. As long as the liability exceeds $750 per individual or $1,500 for married couples filing jointly, you may be eligible for the SGO tax credit. Although credits are stackable, the SGO tax credit in combination with other State tax credits may not exceed the tax liability.
How can I donate?