| Standard gift | EITC gift | |
| Contribution | ($5,000) | ($5,000) |
| PA state tax credit | $0 | $4,500 |
| Federal deduction (assumes a 25% rate) | $1,250 | $125 |
| Out of pocket | ($3,750) | ($375) |
What are the tax benefits to making an EITC-qualified gift?
By utilizing the EITC program, it costs very little to donate a lot. This chart illustrates this highly leveraged way of giving.