Benefits of an SGO
In 2021, the State of Ohio approved House Bill 110, which provides for individuals to receive a tax credit against their Ohio Income Tax for contributions to Scholarship Granting Organizations (SGO)
The credit equals the lesser of $750 or the total amount you donated to SGOs during the tax year. If you are filing a joint return and both you and your spouse make eligible donations, each of you can claim their credit (up to $1,500 total).
• A tax credit reduces the amount of income tax you are required to pay.
• A tax deduction reduces the amount of income that is subject to tax.
Questions & Answers
What is the CISE–SGO?
The CISE-SGO, a Scholarship Granting Organization, is a new 501(c)3 charitable organization created by CISE to allow our donors to receive an Ohio Income Tax Credit for their contributions to support our mission.
Why did we create a new 501(c)3
Due to all our supplementary assistance to the schools (after school programs, nurses, etc.) the existing CISE organization would not have qualified to receive scholarship granting organization (SGO) status from the Ohio Attorney General’s Office
Why is this important to CISE?
A tax credit is more beneficial to our donors than a tax deduction. In addition, many other charitable organizations have created SGOs for the benefit of their donors.
What formal relationship (if any) exists between CISE and CISE-SGO?
The mission of both organizations is the same. The CISE – SGO was created to secure Scholarship Granting organization status and will primarily fund tuition scholarships. The CISE – SGO will not have any employees as CISE staff will perform all the administrative duties.
How will contributions to the CISE – SGO be distributed?
The contributions from donors will be distributed as scholarships for CISE students to attend our Catholic elementary schools or local Catholic high schools.
Will contributions to the CISE – SGO fund other programs beyond scholarships?
We anticipate that these funds will be earmarked for scholarships only. In the event that we have excess funds, we may fund other programs. However, a minimum of 50% of these funds must be used to fund scholarships.
Will CISE-SGO contributions be solicited as a part of the annual CISE campaign?
Yes
What is the amount of the tax credit?
The Ohio Income tax credit is equal to the amount of the contribution with a maximum credit of $750.00 per individual or $1,500.00 for a married couple filing a joint tax return. Contributions must be made to the CISE – SGO to qualify for this credit.
Are corporations eligible for the credit?
No, corporations are not eligible. The only groups eligible for the tax credits are individuals and pass-through entities.
Who should I make my check payable to?
Checks should me made payable to the CISE – SGO.
Can I make automatic contributions through my checking account or credit card? Yes, please ask a CISE staff member for more information.
How should a donor determine whether to contribute to CISE vs. CISE-SGO?
Everyone will need to determine what is best for them. Contributions to both will continue the mission of providing a Catholic education to inner- city children. Both are charitable organizations offering their donors a tax deduction for contributions. The CISE – SGO offers the donors the additional benefit of an Ohio Income tax credit.