Businesses win with tax credit program

Earlier this year, the Catholic Schools Opportunity Fund received a generous two-year pledge from an Oklahoma City business owned by a husband and wife. I had visited briefly with the couple to explain the program’s tremendous tax benefits. They consulted with their CPA and agreed it was the perfect giving tool.

The Catholic Schools Opportunity Fund provides donors with a 75% state income tax credit for their gift each year if they make a two-year pledge. Funds raised through the program are used for tuition assistance for students at the 18 Catholic schools in the Archdiocese of Oklahoma City.

This school year, 494 children (more than 10% of total enrollment) are benefiting from the program. Eighty-five percent of these students qualify for free and reduced-price meals.

The assistance they’re receiving is the result of donations made in 2023 by 434 individuals and 31 businesses. These donors know the program offers an unparalleled way to support Catholic schools.

This is especially true for qualified businesses. Whereas the maximum state tax credit is $2,000 per year for couples and $1,000 per year for single filers, most legal business entities (LLCs, S-corps, C-corps, general partnerships, etc.) can get a credit of up to $100,000 per year.

Businesses can tailor their gift amount based on their tax liability, and thus erase any state taxes they would have otherwise paid. If the business operates as a pass-through, the tax credit on the gift can pass through to the owner’s personal tax liability.

Because of the much larger credit available, business owners can significantly expand the Catholic Schools Opportunity Fund to help even more young people.

Students, donors, schools and parishes all benefit from gifts to this program. For business owners, CSOF is an even bigger winner. 

Don’t forget that paying state income taxes is mandatory. When donors give to the Catholic Schools Opportunity Fund, they are redirecting their state tax dollars to provide tuition help for children in Catholic schools.

I hope you will begin a two-year pledge today. Provided the first-year donation is received by Dec. 31, you can claim the credit on your tax return in the spring.

To learn more, go to www.csofok.org or contact me at [email protected] or (405) 709-2700.

Owen Canfield is director of the Tax Credit Scholarship program.