The Georgia Fostering Success Act (O.C.G.A. § 48-7-29.24), also known as the Qualified Foster Child Donation Credit (QFCD), offers an exceptional opportunity for individual taxpayers in Georgia to make a profound social impact while benefiting from a dollar-for-dollar state income tax credit. This program allows you to redirect a portion of your Georgia income tax liability directly to approved non-profit organizations supporting youth transitioning out of the foster care system.

By participating, you can directly contribute to strengthening your community, support vulnerable young adults, and optimize your state tax strategy.

The Fostering Success Act is designed to be straightforward for individual taxpayers, offering a direct path to impactful giving.

Unlike a tax deduction, which reduces your taxable income, a tax credit directly reduces the amount of tax you owe. The Fostering Success Act offers a 100% dollar-for-dollar credit against your Georgia income tax liability.

• Example: If your Georgia individual income tax liability is $3,000 and you contribute $2,500 to an approved Qualified Foster Child Support Organization (QFCSO) under this program, your tax bill is directly reduced to $500. You effectively choose to allocate $2,500 of your tax payment directly to support foster youth.

The Fostering Success Act is open to Georgia residents who pay state income tax, including:

• Single Filers
• Heads of Household
• Married Couples Filing Jointly
• Individual Owners of Pass-Through Entities (S Corporations, LLCs, Partnerships): If your business does NOT elect to pay tax at the entity level, the credit is passed through to you as an individual owner, and you claim it on your personal Georgia income tax return.

The amount you can contribute and receive a credit for is subject to specific limits, which vary depending on the time of year:

• Annual Statewide Cap: The total amount of credits available across all taxpayers (individuals and businesses) in Georgia is $30 million per calendar year. Credits are approved on a first-come, first-served basis.
• Limits for Contributions Made from January 1 to June 30:
  
  • Single Individual or Head of Household: Up to $2,500.
  • Married Couple Filing Jointly: Up to $5,000.
  • Individual Owners of S-Corps, LLCs, or Partnerships (NOT paying tax at entity level): Up to $5,000.
• Limits for Contributions Made from July 1 to December 31:For contributions made during the second half of the year (July 1 to December 31), the limits are adjusted, provided statewide credits are still available:
  
  • Single Individual, Head of Household, Married Couple Filing Jointly, or Individual Owners of Pass-Through Entities (NOT paying tax at entity level): If tax credits remain available statewide, the individual contribution limits (e.g., $2,500 or $5,000) are lifted. This means you can contribute and receive a credit for any amount pre-approved by the state, up to the remaining statewide cap.

The process for individuals to secure this tax credit is straightforward, requiring pre-approval from the Georgia Department of Revenue:

• Step 1: Request Pre-Approval Online:
  
  • You must electronically submit Form IT-QFCD-TP1 through the Georgia Tax Center (GTC) website (gtc.dor.ga.gov).
  • You will specify the amount you intend to contribute and designate your chosen Qualified Foster Child Support Organization (QFCSO).
  • The DOR reviews requests on a first-come, first-served basis based on credit availability. Approval typically takes about one week.
• Step 2: Make Your Contribution:
  
  • Once your pre-approval is granted, you must make the approved donation directly to the designated QFCSO within 60 days of receiving approval, or by December 31st of the tax year, whichever comes first.
• Step 3: Claim Your Credit:
  
  • The QFCSO will provide you with a confirmation letter/form (e.g., Georgia Form IT-QFCD-FUND1 or IT-QFCD-TP2).
  • Attach this confirmation to your Georgia Individual Income Tax Return (Form 500).

Funds contributed through the Fostering Success Act are used by QFCSOs to provide critical "wraparound services" for eligible youth who have experienced foster care. These services are vital for their successful transition to independence and include:

• Education: Tuition, books, and scholarships for post-secondary education or vocational training.
• Housing: Safe and stable housing solutions, rent, and utility assistance.
• Life Skills: Training in budgeting, job searching, and independent living.
• Mentorship: Connecting youth with supportive adult mentors.
• Basic Needs: Food, transportation, and access to healthcare and mental health services.

• Direct Impact: Your tax dollars directly fund programs that create tangible, positive change in the lives of vulnerable youth in Georgia.
• Personal Satisfaction: Experience the profound fulfillment of knowing your tax payment is directly supporting a cause you care about, helping young adults build brighter futures.
• Financial Efficiency: A dollar-for-dollar tax credit is the most efficient way to reduce your state tax liability, effectively allowing you to choose where a portion of your tax payment is invested.
• Community Strengthening: By helping youth become independent, educated, and contributing members of society, you contribute to a stronger, healthier community for everyone.

To learn more about how you can participate or to begin the pre-approval process, we encourage you to visit the Georgia Tax Center website (gtc.dor.ga.gov) or contact your tax advisor. Your contribution can make a lasting difference in the lives of Georgia's foster youth.