The AL Acct Act
You may be aware the Alabama legislature passed the Alabama Accountability Act (AAA) which is effective this calendar year. The AAA has received a good deal of attention in the press. It provides funds for scholarships for children of failing public schools who transfer to qualified private schools and under some circumstances to other students from poor families transferring to or entering qualified private schools. We encourage you to consider participating as we believe it will provide more opportunities for lower-income children to attend private schools through the following means:
Individuals can allocate half of the tax liability they owe the State of Alabama by giving it to a Scholarship Granting Organization (SGO). We have been assured that your gift will not cause unwanted state entanglement to Restoration Academy. You send your money to a separate 501c3 (SGO) and it is then awarded to the schools that qualify and have requested funds for qualified transfers. This stated, if the state ever began to infringe on our Christ-centered mission, Restoration Academy would remove itself from the process.
The Scholarship Granting Organization can then award scholarships to schools with lower-income students (the money is sent directly to the school on behalf of students who qualify).
The AAA is a benefit to anyone who has tax liability to the State of Alabama. Understand it is a “cash neutral” proposition. Your gift is a $1 for $1 tax credit, not a deduction. In essence, the taxpayer has more control over the allocation of their tax liability. Either an individual’s entire income tax liability is paid to the state of Alabama or 50% (up to a $7,500.00 dollar max) can be allocated to an urban private school willing to accept new students through the AAA. C Corporations may pay 50% of their state tax liability with no cap on donations to this program. There is a three year carry forward with your donation if it exceeds your tax liability. There could also be some federal tax benefits of your donation; please consult with your tax advisor for more details.
If you desire to participate in this process, we ask you to consider the following:
Most importantly, if you are a donor to RA please continue to support our scholarship initiative in addition to your participation in this program which as explained is a “cash neutral” proposition.
Please use the SGO called Scholarships for Kids, Inc. Donations may be sent to:
Scholarship for Kids, Inc
PO Box 10204
Birmingham, AL 35202
We suggest using this SGO because it will consider your request to give your gift to Restoration Academy if you include a separate note along with your check.
We encourage you to consult your accountant for more details. If you would like to consult with two of our board members who have already donated through the program and would be willing to give you further information, please feel free to do so.
Mr. Steve Upton Owner of Crane Works (205) 488-0111 or Mr. Josh Reidinger President of the Warren Averett Asset Management, LLC. at (205) 769-3294
We are exited that this new program will provide education opportunities for lower-income students all over the state of Alabama.