What Is the ALEF Fund?
The ALEF Fund, Inc., is the Student Scholarship Organization (SSO) created by Jewish Federation of Greater Atlanta, which acts as an umbrella SSO for many Jewish schools. Contributors to the ALEF Fund can earmark their contribution directly to CMCH.
How much can I contribute from my taxes?
You may re-direct as little or as much as you wish up to the following limits:
$2,500 for a married couple filing jointly (MFJ)
$1,250 for a married couple filing separately (MFS)
$1,000 for an individual filing single
C-Corps can give up to 75% of GA liability
If I have an LLC, a Partnership, or I’m a Shareholder in an S- Corporation, what does this mean?
Any member of an LLC, a Partner in Partnership, or a Shareholder in an S- Corporation can each contribute up to $10,000 to the ALEF Fund. Taxpayers who own an interest in more than one entity can aggregate that income in determining their contribution level. If both spouses earn income from flow-through entities, then both can contribute up the $10,000 limit. Your share of income on your K-1 plus income, such as wages or other compensation paid to you from the entity, can be offset up to 6%, which is the State of Georgia tax rate. Your filing status does not impact this calculation. The computation and contribution is made at the individual level. If you are subject to Alternative Minimum Tax, you could save 29% of your contribution amount. If you have any questions, please contact your tax advisor.
Like the current $2,500 limit for individuals, this contribution is treated as a Charitable Donation for purposes of Federal Itemized Deductions, but not for State purposes. The amount is then treated as a State tax credit against your State of Georgia income tax. In the past, the cap has been reached and there is a likelihood it may be reached even with the increase to $100 million. We ask that you act quickly and complete your online forms early so CMCH can benefit to the fullest extent. All applications will be submitted on January 1, 2023, and money will not be due for another 60 days. The cap will potentially be reached on January 1, 2023, as it sometimes has in the past. The school receives the money to use for scholarships. You, the taxpayer, receive a dollar for dollar tax credit on your State of Georgia Income tax.
What’s the “catch”?
Truly, the only “catch” is that you have to give ALEF Fund the money up front, and you will only receive it back as a tax credit when you file your 2023 Georgia State taxes at the beginning of 2024.
What is the added bonus as a CMCH parent for contributing to ALEF?
In addition to the tax credit, you can count your SSO contribution as a $500 credit towards your $750 per child give-or-get responsibility. Furthermore, we encourage you to ask friends, family, and colleagues to contribute and you will receive an additional $500 per pledge received. (Please notify the school when you have solicited someone email@example.com).
Must I wait until I file my taxes in order to get my money back?
Yes, and no. You will not receive the credit until you file your 2023 taxes in 2024; however, there are a few ways you can handle your payments:
You may reduce the amount your employer withholds from your paycheck. You will gradually get your money back for your contribution.
If you pay your taxes through quarterly estimates, you may contribute to the ALEF Fund and adjust your quarterly payments. We have a list of CPAs who are volunteering their time to help should you have questions.
Who benefits from this money?
ALL STUDENTS BENEFIT! YES, all students benefit from the ALEF Fund money. Whereas some students will receive scholarships from ALEF Fund money based on eligibility, all students will benefit as this is money that does NOT need to come from the general scholarship fund. These funds can then be used for other purposes to enhance our school and students.
Why the hurry?
Unfortunately, because of the extreme popularity statewide of this legislation, FUNDS WE CAN RECEIVE WILL RUN OUT BY JANUARY 1, 2023! Other organizations and institutions throughout the state have also taken advantage of the law. Once the $100,000,000 contribution mark is achieved, the fund is closed to all potential contributors.
How do I make my 2023 contribution?
We have made it easy! You fill out the form online, we do the work!
FOR NEW USERS:
Go to http://www.aleffund.org/.
Click on NEW USER
Create your personal account. Be sure your information matches exactly the way your Georgia taxes are filed.
Choose to support CMCH (you may choose more than one school)
Please note: If you are a new Georgia taxpayer, you must first register with GA Taxpayer Services Call Center (877) 423-6711.
Follow the prompts through this 5 minute REGISTRATION process. Fill out your 2018 forms and the 2018 Designation Form. CMCH/ALEF will file and process your forms.
Click Returning User. Username = your email address. Reset password if you forgot.
Review your personal information and be sure it matches exactly the way your Georgia taxes are filed. Click “edit” to update.
Review your pledge. If you own all or part of a business, consider applying as an S-Corp, LLC, or C-Corp.
Review your school designation(s) to be sure CMCH is on your list. To make changes, click “edit”.
Click “PLEDGE” and check your email for confirmation of your pledge.
You will receive a contribution acknowledgment, approval form and the confirmation form that you’ll need to file with your 2023 taxes to claim the Education Expense Credit.
You can contact Nicole Flom, ALEF Fund Coordinator, with questions at firstname.lastname@example.org or 404-870-1615
If you have any general or specific questions about your situation, please don’t hesitate to contact me. This is an opportunity that costs us nothing and may be utilized for our community and for CMCH. Thank you for your continued dedication and support of CMCH and Jewish education.
Rabbi Yale New