Support more families
Scholarships reach families who need help with tuition, paid for with dollars that would otherwise go to federal taxes.
For schools & school networks
A new federal funding channel opens January 1, 2027.
For the first time, families and community donors can redirect federal tax dollars, not just charitable giving, toward scholarships for families in your school community. For individual donors who owe at least that much federal tax, every dollar given to a qualified scholarship granting organization (SGO) comes back as a dollar-for-dollar federal tax credit.
$1,700
Federal credit per person, per year; $3,400 for married couples
Uncapped
No national ceiling on the total credit pool
5 years
Carryforward on unused credit, a durable donor incentive
$0 net cost
When the donor owes at least that much federal tax
The opportunity
What it means for your school
A scholarship fund built around your school changes the math for families, for your budget, and for the people who give. Here is what the credit makes possible.
Widen school choice
More families can choose your school when a scholarship closes the gap between tuition and what they can pay.
Ease tuition pressure
Bring in new funding without raising tuition on current families or stretching your fundraising targets.
Diversify your donors
Draw support from anyone who owes federal tax, across geography, income, and mission, not just your current list.
The fine print
Why the size and shape of your SGO matters
Federal law gives the SGO, not the donor, final legal control of every dollar. In a large statewide fund, that control sits far from your school.
The requirement
What it means in a large fund
The SGO keeps ultimate legal control of every dollar.
If a donor's school choice were legally binding, the IRS could treat the SGO as a pass-through, putting its exemption and the donor's credit at risk.
Scholarships must reach 10+ students at more than one school.
Some of your donors' gifts will go to other schools. How much, how it's balanced, and how transparent it is are up to the large SGO.
Only households at or below 300% of area median income qualify.
If eligible demand at your school runs thin, the surplus can go elsewhere. The SGO isn't obligated to return what your community raised.
Prior-year recipients and their siblings are funded first, network-wide.
Dollars go to returning students elsewhere in the SGO before any new student at your school.
Gifts can't be earmarked for a student; a school preference is advisory.
The rules don't address school designation, and the SGO can redirect funds away from a preferred school if it closes, lacks eligible students, or the multi-school rule requires it.
The alternative
Aligned schools, not lost in a statewide pool
Build your own SGO, or join a cluster of schools that share your mission, faith tradition, curriculum model, or region. Donors choose the SGO that matches their values, and their gifts stay in schools they know.
Large statewide fund
Your gifts join everyone's
- Your community's gifts fund students statewide
- Returning students elsewhere are served before yours
- No say in criteria, award size, or timing
- The fund owns the donor relationship
Your own or a cluster SGO
Your gifts stay close to home
- Gifts fund your cluster's scholarship pool
- Your recipients and their siblings build your priority queue
- Published criteria and award timing that fit your families
- You own the donor relationship and the story
Every SGO still needs 10+ students at more than one school, published award criteria, and an independent board whose members' families can't receive awards.
Why SGO Direct
A trusted team to manage every operational requirement
We built the back office from the ground up as a purpose-built engine. AI-driven checks are embedded at every step, so consistency isn't something we chase after the fact; it's built into the process.
Rather than joining a large generalized SGO, we help your cluster stand up a dedicated SGO, so the federal tax dollars your donors redirect stay inside the network of schools they care about. Not a vague promise of impact, but a structure built so donors can see their dollars working close to home.
The partnership
One platform covers the entire lifecycle
Donor platform & payments
Branded portal, card and ACH, gift designation, and IRS donor numbers.
Compliance engine
90% spending, 300% AMI income, residency, and disqualified-person checks.
Scholarship administration
Applications, priority order, awards, and direct-to-school payment.
Documentation & filings
IRS SGO portal, Jan 31 acknowledgements, Feb 28 IRS report, and state list renewals.
Audit-ready reporting
Records, reconciliations, and evidence ready for your independent auditor, plus Form 990 certification support and board dashboards.
Fee within the 10% allowance
Priced within the 10% left after the 90% scholarship rule; never touches scholarship funds.
Reserve your school's place in a founding cluster.
Students funded in 2027, and their siblings, get priority every year after. Florida must submit its 2027 SGO list by February 15, 2027.