how SPE works

A Special Purpose Entity (SPE) is a pass-through LLC that has been approved to receive Pennsylvania Educational Income Tax (EITC) credits. Individuals or businesses can join the SPE by signing a joinder agreement, which allows them to contribute and receive a 90% state tax credit in return.

• Donors must have Pennsylvania-source income.

• Donors must be employed by a shareholder of, a partner in, or member of (i.e., own an interest in an LLC) a business that pays taxes in Pennsylvania.

• Donors must be current on all state and federal tax obligations.

• A high impact way to support local educational programs

• 90% Pennsylvania state tax credit for eligible contributions

• Federal charitable deduction on the remaining 10%

Your contribution supports educational programs that foster literacy, creativity, and lifelong learning for children, educators, and families in Lancaster. Every dollar helps us fight the summer slide, empower teachers, and connect learners with essential library resources.

By utilizing the EITC program, it costs very little to donate a lot. This chart illustrates this highly leveraged way of giving.

	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)

A $5,000 minimum contribution is required in both 2025 and 2026 to participate through Friends of Education.

Credits may become available throughout the current tax year. Contact Friends of Education or Jon Heinly to find out whether credits are currently available. If there are not currently any credits available, you will be added to a waiting list for future rounds of credits.