SGO Tax Credit

For Frequently Asked Questions (FAQ), see below.

The State of Ohio now allows individual donors to make donations up to $750 through a Scholarship Granting Organization (SGO) (up to $1,500 a couple) and receive a 100% tax credit-dollar for dollar-towards a taxpayer’s Ohio tax liability. Make a difference in our students’ lives by designating your tax dollars for scholarships at the Hebrew Academy!

We have partnered with the Ohio Scholarship Fund DBA Every Child Every Family Scholarship Granting Organization (SGO) and you can now take advantage of this great opportunity to designate your tax dollars for scholarships to help our students and families.

This is a great opportunity to donate additional funds to the Hebrew Academy and help our students receive the chinuch/education they deserve!

Please share with family and friends who pay taxes in the state of Ohio!

Frequently Asked Questions (FAQ):

What is an SGO?

SGO is an acronym for Scholarship Granting Organization. SGOs are 501(c)(3) organizations that raise and distribute scholarship funds primarily to k-12 students. The Hebrew Academy of Cleveland has partnered with the Ohio Scholarship Fund DBA Every Child Every Family SGO.

How do SGOs work?

The State of Ohio now allows individual donors to make donations up to $750 through an SGO (up to $1,500 a couple) and receive a 100% tax credit-dollar for dollar-towards a taxpayer’s Ohio tax liability.  

Who is eligible for this tax credit?

Anybody that has a tax liability before withholdings or estimated payments. You do not need to be a HAC parent. The maximum credit cannot exceed the total tax liability. Typically, you can see what your liability was last year by looking at line 13 of your 2022 Ohio IT 1040 State tax return.

Do all charities qualify for this tax credit? What’s the difference between tax credit and tax deductible?

No. Although charities qualify for a charitable contribution standard deduction, tax payers only benefit if they have sufficient deductions to itemize. Additionally, the tax payer will only receive a partial tax savings (depending on their tax bracket). Only donations to an SGO qualify for the tax credit which reduces the donor’s actual tax liability 100% dollar for dollar even if they don’t itemize their deductions and irrelevant of their tax bracket. 

If we are filing jointly, can we donate $1,500 or do we need to donate $750 twice?

Great News! You can now donate $1,500 together! You no longer need to donate $750 separately. 

Can I choose for my donation to be earmarked to the Hebrew Academy of Cleveland?

Yes! Hebrew Academy has partnered with the Ohio Scholarship Fund DBA Every Child Every Family SGO and you can choose Hebrew Academy from the “School to Donate To” dropdown.

Can I choose which student receive my donation?

No. Hebrew Academy is required to have a scholarship application process and prioritize scholarships for students of low-income households at the school’s discretion.

Do SGOs in all states work exactly the same way?

No. Every state has its own rules. Although many states offer a partial tax credit (usually between 50% to 75%), Ohio is one of the first states to offer a 100% tax credit-dollar for dollar!

Why have I never heard of it?

SGOs have been around in other states for many years. Agudath Israel of Ohio and others have been advocating strongly for many years to bring SGOs to Ohio, and played a critical role in ensuring its inclusion as part of the approved biennial budget by Ohio’s Legislature. A special thank you to our parent and executive committee board member, Rabbi Yitz Frank, of Agudath Israel of Ohio for working tirelessly on behalf of our school and parent body!

Ok, I’m ready! What’s the next step?

It’s really easy! Visit https://everychildeveryfamily.org/donate/ and submit your donation. Submit the email receipt you receive from the SGO to your accountant. You’re done! It’s that simple! You can also contact Rabbi Moshe Marcovich at (216) 727-3008 or email [email protected] for assistance.

Where can I find out more?

You can visit https://everychildeveryfamily.org. Additionally, Additional information on scholarship granting organizations is available through the Ohio Attorney General’s office at https://codes.ohio.gov/ohio-revised-code/section-5747.73.

Please note: This FAQ is for informational purposes only and is not intended to provide official tax advice. Consult with your tax advisor/accountant before participating.