A Potential Opportunity to Strengthen St. Ignatius Loyola Academy

Dear Academy Community and Supporters,

Beginning January 1, 2027, The Federal Scholarship Tax Credit (FSTC) will be available as an additional way to support the life-changing educational opportunity the Academy offers every student.

This new tax credit allows eligible donors throughout the country to receive a federal income tax credit (dollar-for-dollar) for qualifying cash contributions to an approved Scholarship Granting Organization (SGO). The maximum annual credit is $1,700 for an individual and up to $3,400 for a married couple filing jointly (each spouse must make a separate donation). The SGO will use your contributions to award scholarships to eligible students to cover qualified educational expenses and will make the payment of scholarship funds directly to St. Ignatius Loyola Academy.

Since the Academy is completely tuition-free and serves students from underserved neighborhoods throughout Baltimore, these scholarship monies will help cover the cost of qualifying educational expenses for every student including books, supplies, technology, and academic support which is nearly $33,000 a year.

Unlike a tax deduction, which reduces the amount of income subject to tax, a tax credit reduces your federal income tax dollar-for-dollar. For example, an eligible donor making a qualifying $1,700 contribution to an SGO would receive a unique identifying number allowing for a tax credit that would result in a $1,700 reduction in the amount of federal income tax you owe. The credit is nonrefundable, and each donor’s ability to use it depends on individual tax circumstances. Any unused tax credit may be carried forward for up to five years.

Though every eligible individual in Maryland can make a qualifying contribution to an approved SGO, the State of Maryland has not yet opted-in to participate in receiving these funds. The Academy is actively working to set up all of the necessary arrangements in anticipation that the State of Maryland will make the decision to opt-in before the end of the calendar year.

Please click here to complete a brief Statement of Intent recording your intention to direct your planned FSTC contribution toward support for St. Ignatius Loyola Academy students, rather than allocate it to another school or organization.

Your statement will help us assess anticipated support and prepare for the program’s launch. It records your current intention and is not a binding pledge or a payment. We will follow up with confirmation and instructions for making a qualifying contribution through an approved SGO.

This tax credit costs you nothing beyond the timing of realizing the tax benefit. We ask that any amount you donate to our SGO partner to support our students be IN ADDITION to your ordinary annual financial support (if any) of the Academy.

Thank you for considering this additional way to support our students from families with financial need and our mission of transforming lives through education.

With gratitude,

Jennifer A. Summers
Vice President for Advancement & External Relations
(410) 783-9279