BizVoice -- March / April 2018

March/April 2018 – BizVoice/Indiana Chamber 41 RESOURCE: Shelley Huffman, Indiana Chamber Foundation, at shuffman@indianachamber.com postsecondary pathways events around the state to advance business- education partnerships in talent development. Committee member Dan Peterson, vice president of industry and governmental affairs at Cook Group Inc. in Bloomington, supports the idea that employers play an important role in workforce development, including reaching out early to engage with education and training providers. “Too often we find, especially in the K-12 world, students and their families don’t really understand all of the opportunities that exist in their own backyard. We need to be as aggressive as possible and as clear as possible to make sure people understand what opportunities are available and what their pathways are to take advantage of those opportunities.” He stresses that sharing experiences – what has worked and what hasn’t – is important. For example, Cook Group rolled out a program to help current employees further their education and training. The company pays tuition up front, provides other resources and has established partnerships with education institutions such as Ivy Tech and Indiana Wesleyan University. While leaders of smaller companies may not believe they can do something similar, Peterson emphasizes it isn’t that difficult, that the investment is worthwhile and that Cook is willing – eager even – to talk to others about the process. This type of sharing and engagement is at the core of the Business Champions program, to help all Indiana employers address their biggest talent development challenges. “We want Indiana’s workforce to be the best that there is,” Alexander sums up. “We want to be a destination of choice for business, for families, and I think this type of conversation is indicative of that. If we can help employers be better in building talent development pipelines, it will be better for all of us, our kids and our grandkids.” As a longtime donor and chairman of the Institute for Quality Education (IQE), I can honestly say firsthand this program is one of the easiest ways to make a lasting impact through philanthropy. To date, this program has helped more than 46,000 Hoosier students by awarding over $60 million in scholarships to assist with tuition costs at more than 300 private schools statewide. The idea that evolved into the tax credit scholarship program originated in the early 1990s. Pat Rooney, founder of Golden Rule Insurance, was concerned that many low-income, inner-city Indianapolis children did not have access to quality educational options because of where they lived. Additionally, he knew these families were not able to afford the private schools to which wealthier families were able to send their children. Because of this inequity, and the belief that a high- quality education is a key component to breaking the cycle of poverty, Rooney began the Educational Choice Charitable Trust (ECCT). The ECCT board of directors, comprised of Indianapolis-area business leaders – including John Ackerman, Mitch Daniels, Carol D’Amico, Fred Klipsch and myself – raised more than $1 million and awarded thousands of low-income, Indianapolis students with scholarships to attend private schools. While pleased with the progress, Rooney was clear about the ECCT’s organizational goal: to go out of business because public support for providing scholarships to these deserving young Hoosiers had been successfully secured. Finally, in 2009, there was a breakthrough. Under the leadership of Gov. Daniels, House Speaker Brian Bosma and Senate President Pro-Tem David Long, along with the support of organizations like IQE and the Indiana Chamber of Commerce, the Indiana Tax Credit Scholarship Program was established. This chart illustrates the potential tax savings for a donation to IQE’s SGO. Investments in young people today will pay dividends now and well into the future. AUTHOR: Al Hubbard is chairman of the Institute for Quality Education. To learn more about the tax credit scholarship program, donate or schedule an informational meeting for your business or employees, go to www.i4qed.org/sgo or call (317) 870-2532 Tax Credit Scholarships A Winning Investment for Students and Donors The Indiana Tax Credit Scholarship Program was created in 2009 to provide lower-income families financial assistance to send their children to participating private K-12 schools. Individuals or businesses donate to a qualified scholarship granting organization (SGO) to fund the scholarships and receive a state tax credit equal to 50% of their donation. GUEST COLUMN Al Hubbard Contribution of $1,000 Federal Tax Brackets 25% 28% 33% 35% Indiana Tax Savings (50%) $500 $500 $500 $500 Federal Tax Savings (1) $125 $140 $165 $175 Total State and Federal Tax Savings $625 $640 $665 $675 True Cost of Donation $375 $360 $335 $325 (1) The federal tax savings is generally equal to the net federal deduction multiplied by the donor’s federal tax rate. The net federal deduction is equal to the donation amount less the state tax credit as state income taxes are deductible as itemized deductions for federal income tax purposes. Actual federal tax savings will vary based on your individual income tax status. Please consult your tax advisor.