Please consult a tax professional about your individual tax situation!
Q: Is there a limit to how much I can give and still receive the credit?
No, there is no limit on your donations as long as there are tax credits available (see section above for link to check remaining credits). The credit is applied to your Indiana state tax liability. If the amount of your credit exceeds your tax liability, the unused credit may be carried forward for up to nine years, but it may not be carried back or refunded.
Q: Can I designate a school or student to receive my gift?
Yes, and no. You may designate one of our participating schools to receive your gift. However, SGO donations may not designate a particular student; this would be considered a tuition payment and is not eligible for a tax credit.
Q: What if I don't have a particular school in mind?
We recommend that you browse our list of participating schools, or talk to us if you have an interest in schools that align with your interest area (geographic area, special needs, urban/rural, classical, faith-based, etc.). We also welcome donations to our general fund, which is used for scholarships to support students attending all of our partner schools.
Q: How do I claim my credit?
The receipt letter that you receive from Sagamore Institute will include the amount of the donation, the tax credit certification number, and instructions for claiming the credit. We also send out year-end letters in January that summarize your donation and include detailed directions.
Q: Is this gift eligible for a federal deduction?
Yes, if you itemize. The amount eligible for federal tax deduction as a charitable contribution is 50% of the value of the SGO gift. Pending federal rules also provide that donors who have less than $10,000 in state and local tax (SALT) deductions in the year that the credit is being claimed may deduct the other 50% of the gift as a state tax payment. All gifts are eligible for a 50% Indiana state tax credit, so long as credits remain. See the "Understanding the Tax Benefits" page for more information.
Q: Can I give using a Donor Advised Fund?
The Indiana Department of Revenue will give a donor a tax credit certification number for a gift given from a DAF. HOWEVER, we strongly advise against giving to the SGO program through a DAF because of the potential penalties and fines from the IRS on the federal side. If you want to use DAF funds to benefit a school, please consider giving directly to the school.
Q: Can I give to the SGO through my IRA?
It is really important to discuss the best way for you to give with your tax professional. Anyone who is over 59 1/2 can give to the SGO from their IRA without a penalty. A gift from an IRA will get the 50% state tax credit. It is our understanding that a gift made from an IRA would NOT be considered a Qualified Charitable Distribution and would need to be included as taxable income on your federal taxes. If you itemize you would deduct 50% as a charitable donation.