The Alabama Accountability Act
and
Cornerstone Christian School
The state of Alabama has passed the Alabama Accountability Act (AAA) of 2013. The purpose of the AAA is to
encourage donations to Scholarship Granting Organizations (SGO) that provide scholarships to K5-12 students,
enabling them to assist students below 200% of the federal poverty level to receive a private education.
Cornerstone has been approved as a qualified private school to receive scholarship funds through Scholarships for
Kids, Inc. an approved Scholarship Granting Organization (SGO) by the Alabama Department of Revenue.
There are 2 ways this affects anyone associated with Cornerstone Christian School.
First, Cornerstone may recruit new students that meet our entrance requirements but whose family may not be able to
afford a Cornerstone education. Cornerstone may then recommend eligible students to the SGO for a scholarship.
Students must meet the following requirements of the AAA for Cornerstone to receive funding on behalf of the student.
•The student is a member of a household whose total annual income meets the requirements of the Accountability
Act(less than 2 times the federal poverty level for the number of family members).
•The student was eligible to attend a public school in the preceding semester or is starting school in Alabama for the
first time.
Second, C-Corporations and individual taxpayers may make donations to Scholarships for Kids (SGO) on behalf of
Cornerstone. Individuals and corporations who contribute to Scholarships for Kids are eligible for a tax credit in the
amount of their donation, up to 50% of their Alabama income tax liability, with an annual tax credit limit of $7,500 for
individuals. There is no tax credit limit for c corporations. Because the donation is to a qualifying 501(c)3 organization,
the donation also qualifies as a federal income tax deduction. This is a dollar-for-dollar credit on the state side,
which makes it much more financially beneficial than a simple deductible donation.
There is a yearly limit of $25 million in total credits that may be issued by the State of Alabama. On January 1st a new
$25 million is available on a first-come, first-served basis. Credits must be registered on the Department of Revenue's
website in order to be claimed. The website may be found at revenue.alabama.gov/accountability.
In order to reserve your portion of the $25 million available for tax credits each year, a Donor must do the following:
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Set up a My Alabama Taxes (MAT) Account with the Alabama Department of Revenue
at https://myalabamataxes.alabama.gov/_/#1. Reserve your tax credit in the MAT system.
Make a donation equal to the credit reserved to Scholarships for Kids, Inc, for Cornerstone Christian School
within 30 days of reserving your credit.
A notice will be sent to Scholarships for Kids of your intended donation, and Scholarships for Kids will notify the
Department of Revenue when it receives your donation. This verification by the SGO is necessary in order for
the Donor to secure the tax credit
To receive more information, request a donor packet, or discuss donating to the program, please contact
Jay Adams at 669.7777 or email financialaid@cornerstonechargers.com.