Pennsylvania donor questions, answered
Common questions about participating in Pennsylvania and federal scholarship tax-credit programs.
I'm an individual, not a business. Can I really participate in Pennsylvania's programs?
Yes, typically through an SPE, which lets qualifying taxpayers participate together and receive the credit on their personal Pennsylvania taxes. See the SPE guide for the full walkthrough.
What is an SPE in one sentence?
A group entity that lets qualifying taxpayers participate together and receive the credit on their personal Pennsylvania taxes.
How much of my contribution comes back as a credit?
Donors who participate through a Special Purpose Entity (SPE) receive a 90% Pennsylvania tax credit on their contribution. Your tax advisor or CPA can tell you what the credit means for your return.
Do I choose which school benefits?
Contributions go to scholarship organizations, and donors can direct support toward a participating school's scholarship fund; the scholarship organization receives and distributes funds, and schools determine student eligibility under program rules.
What paperwork will I get?
After year-end you receive an RK-1 and an acknowledgment reflecting your participation, which your tax preparer uses to claim the credit.
When do I need to decide?
Program cycles are annual and credits are limited, so joining early in a cycle is better than deciding late.
What is the FSTC, and am I eligible?
Beginning in 2027, the Federal Scholarship Tax Credit gives individual taxpayers, wherever they live, a federal tax credit for gifts to scholarship granting organizations in participating states. Explore the FSTC Hub for details.
Can I participate in both the Pennsylvania programs and the federal credit?
Likely yes, with separate contributions and separate rules. We will confirm the specifics for your situation.
Is FundEDU a charity? Where does my money actually go?
FundEDU is not the charity and never holds your scholarship contribution; contributions go to scholarship organizations. FundEDU is a registered professional solicitor and consultant that helps donors and schools navigate the process.
Who should I talk to about my specific taxes?
Your tax advisor or CPA. We provide tax information, not tax advice, and we will happily join that conversation.
Still have questions?
Book a conversation and we will walk through it with you.
