The JTO has expanded its programs! A supporter may recommend that the funds they give to the JTO go to a particular student, school or to the general fund for need-based awards.
Regulations governing recommended funds:
- Annual applications are required for each student.
- Recommended funds may not be awarded solely on a supporter’s recommendation; all other criteria must be met
- A parent or guardian cannot provide recommended support for their own child or dependent
- It is prohibited to swap recommended support – for example you cannot recommend your friend’s child and your same friend recommend your child.
- Per the state of Arizona “A school tuition organization cannot award, restrict or reserve scholarships solely on the basis of a donor’s recommendation. A taxpayer may not claim a tax credit if the taxpayer agrees to swap donations with another taxpayer to benefit either taxpayer’s own dependent.”
- Arizona regulations state that recommended funds are at the complete and sole discretion of the school tuition organization (STO) accepting those funds; the JTO is an STO. Recommended funds are not guaranteed; all criteria must be met.
Playing your part if you are applying for recommended funds:
Recommended funds are a channel by which you can help cover the costs of your child’s or children’s tuition for a Jewish day school education. You play an important part. After you have applied to the JTO for a scholarship, reach out to your friends, family or any Arizona taxpayer and ask them to support the JTO through Arizona’s dollar-for-dollar private school tax credit. You can speak to them in person, send a letter and/or use social media, whatever communication tool works best for you. You will find sample communications here that will offer a good starting point. It is important to follow the regulations and guidelines provided above. Contact the JTO office or your school representative with any questions or for assistance. You will find more applicant information here.
While corporations cannot provide student-recommended funds, they can recommend schools. If you own, work for, or know of an S corporation, an LLC filing as an S corporation, a C corporation or an insurance company, speak to the person responsible for the company’s taxes. Corporations and insurance companies also receive a dollar-for-dollar tax credit and scholarships funded with corporate dollars will go to children from low-income families. Supporting the JTO meets CRA requirements for financial institutions. Corporations don’t have a maximum, other than the state cap ($106 million for 2019) – so your company or employer can really make a positive impact on your school. The JTO staff is happy to help you with the
corporate tax program.
In order to receive the Arizona private school tax credit, you must provide your support through an STO such as the JTO. Applying for the corporate tax credit cannot be done directly through the school.