Enhancing Education Through Funding
Donor and Scholarship Explanation
PACE Scholarship Organization is a 501(c)(3) non-profit charitable organization based in Covington, GA. We are dedicated to the enhancement of the education received by all of Georgia’s Pre-K, Elementary, Middle, and High School students through student scholarships provided for tuition at Georgia private schools.
PACE Scholarship Organization facilitates tax credit contributions from Georgia taxpayers and distributes those funds to qualified applicants in the form of student scholarships.
Every approved contribution to PACE Scholarship Organization can be used as a 100% tax credit on a Georgia Income Tax Return. The total amount donated to PACE Scholarship Organization can be used as a dollar for dollar credit towards any income tax due to the State of Georgia. The donor can take a charitable contribution deduction on their federal return and a tax credit on their state return. Credits are allocated on a first come first served basis. And, $50 million maximum is allocated for the calendar year 2008 for the entire program.
How the Contribution Process Works
The donor contacts PACE Scholarship Organization and expresses their intent to make a contribution and requests pre-approval of the credit from the Georgia Department of Revenue. PACE Scholarship Organization informs the potential donor of the requirements of the code section and provides them with the Georgia Qualified Education Expense Credit Donor Authorization Form. This form is the first step in applying for the income tax credit for qualified education expenses and requests pre-approval of the intended contribution to a student scholarship organization.
Within 30 days of receiving the Pre-approval Form, the Department of Revenue pre-approves denies or reduces the requested amount based on the availability of tax credits remaining against the aggregate total of $58 million.
Upon approval, the donor must make the contribution to PACE Scholarship Organization within 60 days after the date of the approval notice from the Georgia Department of Revenue. The donation must also be made to PACE Scholarship Organization by the end of the calendar year in which the donation was pre-approved.
PACE Scholarship Organization provides a letter to the donor confirming the dollar amount of the donor’s contribution. The law requires the donor to file this letter with their tax return IF they are filing a paper return. Taxpayers filing Electronic returns are NOT required to send the DOR approval form, BUT the taxpayer must keep a record of the form.
Student Scholarships are awarded on a yearly basis to qualified Georgia students who meet the minimum eligibility requirements and submit an application. Student Scholarships awarded to selected students can be used towards tuition at the accredited private institution of their parent’s choice. Scholarship applications are available through the school the student plans to attend. Students are encouraged to reapply for the scholarship yearly.
We need your help today to make a difference!
PACE Scholarship Organization is a qualified Student Scholarship Organization listed as approved on the Georgia Department of Education’s official website. The PACE Scholarship Organization staff will administer scholarship programs in an effective, efficient, and ethical manner with accountability to scholarship recipients, to the schools attended by scholarship recipients, and to scholarship donors. PACE Scholarship Organization is the ideal vehicle to assist you in helping disadvantaged children receive a better education. PACE Scholarship Organization, a nonprofit corporation incorporated under the laws of the State of Georgia, is recognized by the Internal Revenue Service as a tax-exempt 501(c)(3) organization; and is recognized by the Georgia Department of Education as a Student Scholarship Organization under Georgia law. The Taxpayer ID for PACE Scholarship Organization is 26-4153952.
For Corporations
Corporations are encouraged to get involved and help improve education for Georgia’s children!
Corporations who contribute to the PACE Scholarship Organization are eligible for a credit against their Georgia income tax liability in an amount not to exceed the actual amount expended or 75 percent of the corporation’s income tax liability, whichever is less.
For any corporate donor that desires to make its participation in the PACE Scholarship Organization broadly known to its employees, customers, or the public, the PACE Scholarship Organization will create and maintain a scholarship fund in the name of the corporation.
The Board of Directors of PACE Scholarship Organization will make all final scholarship decisions.
Employees of the corporation, as well as others, will be able to donate to the designated fund and receive the applicable tax credit amount for individual donors.
For Individuals
Now, you can contribute to benefit the children of Georgia and get credit for your generosity!
Individuals, who contribute to PACE Scholarship Organization in the case of a single individual or a head of household, will receive a credit against their Georgia income tax liability in an amount equal to the actual amount expended or $1,000 per tax year, whichever is less. In the case of a contribution made by a married couple filing a joint return, the amount of the tax credit is equal to the actual amount expended or $2,500 per tax year, whichever is less.
Federal Income Tax Deduction
In addition to receiving a credit against their Georgia income taxes, taxpayers may take a charitable deduction on their federal income tax returns for amounts contributed to PACE Scholarship Organization. However, in calculating their Georgia taxable income on their state returns, taxpayers who take the tax credit for their contributions to the PACE Scholarship Organization will have to add back to Georgia taxable income the corresponding amount taken as a federal charitable income tax deduction.
Designated Funds
PACE Scholarship Organization must obligate 90 percent of its annual revenue for scholarships. Generally, amounts contributed to the PACE Scholarship Program will be held in a general fund from which scholarships will be awarded to deserving students at the discretion of the board of directors.
HOW to Contribute for a tax credit
Four Simple Steps to Get Credit for Helping Children!
Whether you are an individual taxpayer or a representative of a corporation, you should follow four simple steps to receive a tax credit for your contribution to the Georgia PACE Scholarship Program.
You need to file the information on this simple form with the Georgia Department of Revenue to pre-qualify your contribution to the PACE Scholarship Organization. The reason for this process is to make sure that the annual $58 million cap on Education Expense Credits has not been exceeded. This application process can be completed by the taxpayer by utilizing the DOR's Georgia Tax Center website. However, the DOR will allow PACE to file on your behalf after you have completed the PACE Donor Authorization Form.
2. Confirmation - The Georgia Department of Revenue will review your form and confirm that the $58 million yearly cap has not been exceeded. The Department of Revenue will then send you a copy of the approved Form IT-QEE-TP1 by U.S. Mail. This will let you know that you can go ahead and make your contribution.
3. Donate to Help Kids - After you receive your approved Form IT-QEE-TP1, you will have 60 days to make your donation to PACE Scholarship Organization. You can make your donation by sending a check in the mail. Along with your donation, you need to send a photocopy of the Form IT-QEE-TP1 to PACE Scholarship Organization.
4. Get Credit! - PACE will send you a confirmation Form IT-QEE-SSO1, which, along with the approved Form IT-QEE-TP1, you will need to send in with your state tax return in order to claim the Education Expense Credit.
You can read the full rules about the Education Expense Credit on the Department of Education's website here: Georgia Department of Education.