In October, 2001, the Foundation obtained IRS tax exemption status under Section 501(c)(3) of the Internal Revenue Code, thus making KASD Education Foundation tax exempt for donors. In December, 2001, the Foundation obtained approval to solicit tax exempt funds from donors through the Pennsylvania Department of State, Bureau of Charitable Organizations.
On May 6, 2002, the approval, rare at that time, was given by Pennsylvania Department of Community and Economic Development for KASDEF to be in the listing of educational improvement organizations, which resulted in thousands of dollars in contributions from local businesses in lieu of their payment of Pennsylvania corporate income taxes. (See EITC – Educational Improvement Tax Credit)
The KASD Alumni Association was merged into the KASD Education Foundation in June, 2006, which until this day, remains an all-volunteer group, comprised largely of alumni of Kutztown Area High School. From its inception, with no assets, the Foundation now has under its management $1,000,000 in safely invested funds for scholarships and other educational programs benefiting the students, teachers, taxpayers and residents of Kutztown Area School District.