Virginia Department of Education

The Hague School Foundation is a 501(c)3 established in 2023 to provide scholarships and to support the mission of The Hague School. It provides a way for individuals and businesses, upon approval by the Virginia Department of Education, to obtain pre-authorization for tax credits in addition to certain tax deductions on their individual or corporate tax returns. Learn more about The Hague School Foundation.

By the rules of the VA EISTCP program, The Hague School Foundation must disburse some funds to at least one other independent school in the Commonwealth. As such, the Foundation’s mission aims to support of any Hampton Roads area independent school that serves students in grades 6-8 and that is willing to meet the Foundation’s partner school requirements.

As such donors may specify their choice of recipient school within our list of partner schools, to which the Hague School Foundation will provide the first opportunity to find eligible students to use the funds. For students to be eligible, family income must be below 3x federal poverty guidelines, and they must be able to provide norm-referenced exam scores for that student. Additionally, a school may not take more than VA SOQ funding allotment (currently ~$7,500) per eligible student per school year. Any funds not disbursed to the donor’s choice of school will instead be allocated on the basis of student need within the portfolio of schools.

What are the tax savings to individual donors?

In addition to a 65% Virginia tax credit, donors who itemize also receive federal and state deductions for charitable contributions and therefore achieve tax savings in multiple ways. Also, donors contributing appreciated marketable securities save on capital gains tax. Education Improvement Scholarships Tax Credits are non-transferable. Credits may not exceed the tax liability in a given year, but may be carried over for up to five successive years. $125,000 is the maximum amount of donations eligible for tax credits in a taxable year for an individual. There is no minimum or maximum donation limitation for businesses.

Can businesses benefit from this program?

Yes. In addition to tax benefits to individuals, businesses can claim the Education Improvement Scholarships Tax Credits against corporate income taxes, including:

• Virginia Bank Franchise Tax

• Virginia Insurance Premiums License Tax

• Virginia Public Service Corporations Tax

• Personal Income Taxes via pass-through entities such as S-Corporations, LLCs, and Partnerships

The Virginia Department of Education has provided the following information about this program

EDUCATION IMPROVEMENT SCHOLARSHIPS TAX CREDITS PROGRAM

The Education Improvement Scholarships Tax Credits Program (EISTCP) provides state tax credits for persons or businesses making monetary or marketable securities donations to approved scholarship foundations that provide scholarships to eligible students for qualified educational expenses incurred in attending eligible nonpublic schools in Virginia.

The tax credit is equal to 65 percent of the monetary or marketable securities donation, and may be claimed against the individual income tax, corporate income tax, bank franchise tax, insurance premiums license tax, or tax on public service corporations. Tax credits issued by VDOE may be claimed for the taxable year in which the donation was made to a qualified scholarship foundation. Any unused tax credits may be carried over for the next five succeeding taxable years or until the total amount of the credit has been taken, whichever is sooner. The total amount of tax credits that may be issued in each program year (i.e., state fiscal year) is $25 million. For more information, contact your accountant or go to Qualified Donations & the Tax Credit Approval Process on the DOE website.

Make an EISTCP Donation

To make a donation pledge and to receive pre-authorization to purchase a VA tax credit, click here.