The Education Freedom Tax Credit (EFTC) is a significant leap forward for educational freedom.
But passing legislation is just half the battle when it comes to creating new opportunities. The other half is implementation.
For Scholarship Granting Organizations (SGOs), one of the most important pieces of implementation is establishing partnership agreements with education providers.
This starts with a simple question: What should SGOs and providers expect from each other?
A clear partnership agreement can help answer that question. It gives both sides a shared understanding of their responsibilities, establishes expectations up front, and can help prevent confusion as the program gets underway.
The goal is transparency. SGOs should know what they can expect from providers. Providers should know what they can expect from SGOs. The clearer those expectations are from the beginning, the easier it is for both sides to work together.
But creating that agreement can be easier said than done.
Many SGOs find themselves building the airplane while flying it. They may know they need an agreement with providers, but do not know where to start or which questions to ask.
We have created two resources to help.
The Provider-SGO Partnership Agreement provides a starting point for SGOs working with education providers. It identifies key elements to consider and offers a structure that SGOs can adapt to their own programs.
The Provider-SGO Partnership Guidance Document goes a step further. It walks through common scenarios, outlines potential responsibilities for both providers and SGOs, and raises questions SGOs may want to consider as they establish partnership agreements.
The two documents are designed to be used side by side. The Provider-SGO Partnership Agreement provides the framework, while the Provider-SGO Partnership Guidance Document provides additional context and practical considerations to help SGOs work through the different elements of that agreement.
Neither document is intended to be the final word. As with other aspects of EFTC implementation, these resources may need to evolve as the Internal Revenue Service releases additional rules and guidance.
Implementation does not have to mean starting from scratch.
These documents are designed to give SGOs a practical framework for building the relationships and processes needed to make the EFTC work for families.
Download the full Provider-SGO Partnership Agreement and Provider-SGO Partnership Guidance Document below.
Provider-SGO Partnership Agreement
Provider-SGO Partnership Guidance Document
