Beaumont Scholarship Granting Organization (SGO)

Frequently Asked Questions

What is a Scholarship Granting Organization (SGO)?

It is a religious or nonprofit organization exempt from federal taxation whose primary intent must be to award academic scholarships for K-12 students to attend schools with a priority to award scholarships to low-income students.

What is the benefit of an SGO?

In 2021, the Ohio General Assembly established a program that allows Ohio taxpayers to receive a 100% tax credit against Ohio income tax liability for contributions made to a certified Scholarship Granting Organization. The maximum credit amount is $750, or $1,500 if married and filing jointly, currently. The Ohio Tax Credit Scholarship initiative is subject to the rules and directives of the Ohio Attorney General’s Office and is subject to change.

Why did Beaumont School create a separate SGO?

Beaumont School created its own SGO – the Beaumont Scholarship Granting Organization (Beaumont SGO) – to allow members of our community to support the mission of Beaumont and our students while also receiving this Ohio tax credit – dollar for dollar. Only contributions made to a certified scholarship granting organization are eligible to receive this tax credit on an individual’s State of Ohio tax return. Should you prefer to make a contribution to Beaumont School through the Catholic Community Foundation’s Angel Fund, we will still receive it.

Who will benefit from the program?

Contributions to the Beaumont SGO benefit Beaumont School students and their families, prioritizing scholarships for those with demonstrated financial need. It will also allow taxpayers to reduce their Ohio state tax liability. This is a dollar-for-dollar tax credit against your tax liability or the taxes you owe to the State of Ohio. When you allocate your tax dollars to the Beaumont SGO, it goes to Beaumont School to help our students instead of going to the State of Ohio.

How do I estimate my State of Ohio tax liability?

It is best to always consult with your tax professional for information on the impact of this or any charitable donation. All individuals with earned income will pay income taxes to the State. Even if you received a refund in the previous year, you paid State income taxes. To estimate the current year’s liability, contact your tax preparer or review your previous year’s tax return. Your State tax liability is not necessarily the amount deducted from your paycheck or the amount refunded to you or owed to the State. Rather, the tax liability is the total amount owed to the State before determining whether there is a refund or an additional amount to pay. In order to estimate if you will have a tax liability in the coming year, review your tax liability from the previous year’s State of Ohio tax return (in 2024, this amount would be on 1040 IT, line 8c). After considering whether there have been significant changes to your income this year, reviewing the prior year’s State of Ohio tax return will help to estimate whether you will have a similar liability in the current tax year. Contact your tax preparer with questions.

How does a tax deduction differ from a tax credit?

A tax deduction reduces a taxpayer’s overall taxable income. A tax credit is a dollar-for-dollar credit against taxes paid to the State of Ohio up to the limits allowed by the credit. All contributions of this nature are directed to the Beaumont SGO rather than the State of Ohio. Since the Beaumont SGO is a 501( c )(3) your donation is tax deductible on your federal income tax if you itemize contributions. Specific tax questions should be directed to your personal tax advisor.

Can I direct my contribution to a specific student?

No. As a 501(c)(3) organization, the Beaumont Scholarship Granting Organization may not accept contributions that are designated for a specific student.

Can I direct my contribution to a specific scholarship fund?

No. As a 501(c)(3) organization, the Beaumont SGO may not accept contributions that are designated for a specific endowed scholarship fund or department. Only contributions made to the Beaumont SGO are eligible for this tax liability credit. If you are interested in supporting Beaumont School students in a different way, please consider contributing to our Annual Fund or by contacting Director of Advancement Patti Clair.

How can I contribute?

You may contribute online to the Beaumont SGO or mail a contribution directly to:
Beaumont School Scholarship Granting Organization
3301 North Park Blvd
Cleveland Heights, OH 44118
Please note, to receive the tax credit, the contribution must be made to the Beaumont SGO. Any other contributions made directly to Beaumont School are not eligible for this credit.

My employer offers matching contributions. Will the Beaumont Scholarship Granting Organization accept a matching contribution from my employer?

Yes. This is a great way to increase your impact. However, you will not receive a receipt or tax credit for your employer’s matching amount.

Does a student need to apply for an award through the Beaumont Scholarship Granting Organization?

Yes. Beaumont School students may apply for a financial assistance award through the Beaumont SGO by completing a FACTS Grant & Aid application. FACTS is a third-party company that secondary educational institutions use to conduct financial analyses to determine families’ financial needs. A link to that application is provided on the Beaumont School website here.

Who is responsible for submitting the contribution information to the State of Ohio?

Each donor is personally responsible for maintaining the contribution acknowledgment letter provided by the Beaumont Scholarship Granting Organization. That receipt can be used to claim the tax credit through the State of Ohio.