Support St. Mary's through the Education Freedom Tax Credit
A new federal law takes effect January 1, 2027. Your donation to St. Mary scholarships earns a dollar-for-dollar federal income tax credit — up to $1,700 per taxpayer, at no net cost to you.
How the Education Freedom Tax Credit Works
The EFTC gives individual taxpayers a dollar-for-dollar federal income tax credit — not just a deduction — for contributing to an approved Scholarship-Granting Organization (SGO) that supports eligible students at qualifying schools like St. Mary.
That means a $1,700 donation can reduce your federal tax bill by $1,700. For a married couple, that's up to $3,400 in combined credit.
Contributions go through an approved SGO — either ACE Scholarships or Seeds of Hope. The SGO administers scholarships, provides your tax documentation, and reports to the IRS. St. Mary does not process contributions or issue receipts.
Colorado has officially opted into the program, and St. Mary is a qualifying school through both SGOs.
Commit
Decide your giving amount — up to $1,700 per taxpayer. You can express your intent now; actual contributions begin January 2027.
Donate
Give through ACE Scholarships or Seeds of Hope and designate St. Mary Catholic Virtue School. You cannot donate directly to the school.
Claim
Your SGO sends tax documentation. Your preparer claims the EFTC on your 2027 federal return, filed in 2028.
Multiply
The Archdiocese of Denver matches eligible gifts through ACE Scholarships — and every family you invite amplifies the impact.
A credit is not a deduction. A deduction lowers your taxable income. A credit reduces the actual tax you owe, dollar-for-dollar. Donate $1,000 and owe $1,000 in federal taxes? Your bill drops to zero.
What if my donation exceeds my tax liability? The credit is nonrefundable — it won't generate a refund. But unused credit carries forward up to five years, so a $1,700 donation against an $800 liability leaves $900 to offset future tax years.
Important: The same contribution cannot count for both the EFTC and a federal charitable deduction. For most donors, the credit is the more valuable option. Consult your tax advisor. According to the Archdiocese of Denver, roughly 62% of taxpayers have enough federal tax liability to benefit from the maximum $1,700 credit.
Archdiocese of Denver Matching
Beginning January 2027, the Archdiocese of Denver will match eligible donations channeled through ACE Scholarships, subject to grant availability and program requirements.
The table shows what different giving levels look like when federal credit and Archdiocese matching are combined.
*Matching subject to program requirements and grant availability. Confirm availability before donating.
| Donation | Tax credit | Diocese match | Total to St. Mary | Your cost |
|---|---|---|---|---|
| $500 | −$500 | +$500 | $1,000 | $0 |
| $1,000 | −$1,000 | +$1,000 | $2,000 | $0 |
| $1,700 | −$1,700 | +$1,700 | $3,400 | $0 |
| $3,400 (couple) | −$3,400 | +$3,400 | $6,800 | $0 |
Who Qualifies
To donate: any individual U.S. taxpayer with federal income tax liability. There is no income cap for donors. You do not need to have a child at St. Mary, and you do not need to live in Colorado. Grandparents, relatives, alumni, parishioners, friends, and colleagues anywhere in the country can all participate.
To receive a scholarship: a student's household income must not exceed 300% of the area median gross income, adjusted for household size. This is broader than it sounds — for example, a family of five in Denver County can earn up to approximately $466,800 and still qualify. The Archdiocese estimates this covers about 95% of children.
Scholarships may cover tuition and other qualifying K–12 expenses. Meeting the income threshold does not guarantee an award — ACE sets its own criteria and funding is subject to availability.
Key facts at a glance
- Up to $1,700 credit per individual taxpayer per year
- Up to $3,400 for a married couple filing jointly
- No donor income cap
- Donors outside Colorado may participate
- No child enrollment at St. Mary required to donate
- Unused credit carries forward up to five years
- Colorado has officially opted into the program
- St. Mary qualifies through ACE Scholarships and Seeds of Hope
Already enrolled at St. Mary? ACE scholarship applications are expected to open in mid-November 2026 for 2027 awards. Contact the school office or visit acescholarships.org.
Commit. Connect. Multiply.
The EFTC's reach grows with every person who participates — and every person they invite. Here is how St. Mary families can make the most of this opportunity together.
Commit
Make your own commitment to give through ACE or Seeds of Hope starting January 2027. Contribute the maximum if you can — or whatever works for your family.
Connect
Personally invite at least five people — family, friends, neighbors, colleagues — including those outside Colorado. They don't need a child at St. Mary to participate.
Multiply
Follow up with your invitees, answer their questions, and encourage them to invite five more. Every additional donor multiplies what St. Mary students receive.
Impact
As scholarship funding grows, St. Mary can direct more existing resources toward academic programs and opportunities for every student, not only scholarship recipients.
FAQs
Why Support SMCVS?
Our school is more than just a school. We are focused on building a strong, Catholic foundation for your child to flourish and grow. Through our focus on the virtues, your child will gain an understanding of the world around them and the role they play in it.
