Running or thinking about starting a scholarship granting organization (SGO)? Or building your state’s process for participating in the Education Freedom Tax Credit (EFTC) program? Here’s what you should know.
In July 2025, Congress passed the Educational Choice for Children Act (ECCA), creating the Education Freedom Tax Credit (EFTC) program (also known as the Federal Scholarship Tax Credit) under 26 U.S.C. § 25F. States participate by having their governor submit a list of qualifying scholarship granting organizations (SGOs) to the U.S. Treasury each year. As of September 2026, 30 states have formally opted into the program. Starting January 1, 2027, donors will be able to claim a $1,700 federal tax credit for gifts to a certified SGO.
SGO Start-Up Accelerator
Cohort 2
Applications Due October 12, 2026
SGO Start-Up Accelerator: Cohort 2
We’re launching the next cohort of the SGO Start-Up Accelerator, an intensive program supporting 10–12 leaders ready to launch family-first SGOs. Cohort members get mentorship, an in-person bootcamp, legal and fundraising support, and microgrants of $10,000–$20,000 for operational readiness. Applications are due October 13, 2026.
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Latest News
Treasury Releases Rules
The U.S. Department of the Treasury and IRS released proposed rules for the Education Freedom Tax Credit (EFTC), bringing families one step closer to new education opportunities beginning in January 2027.
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SGO Guidance Memorandum
This memo walks states through a step-by-step process for reviewing organizations and determining SGO eligibility.
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SGO Simulator
This operating cost simulator is an interactive calculator that models your organization’s real operating costs.
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Tech Platform Guide
Choosing a platform is the easy part. This guide helps you decide on structure and operations before you pick a vendor.
LEARN MOREGuidance for States
States need a process for reviewing organizations and determining whether they meet the federal requirements to appear on the state’s SGO list. The SGO Guidance Memorandum walks states through that process step by step, and the SGO Application puts it into practice—together, helping states move the EFTC from policy to practice.
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Plan Your Operating Budget
Founders rarely anticipate the full range of costs—transaction fees, technology, accounting, staff—until they’re already serving donors and students. The SGO Simulator models how those costs shift as your donor and student counts grow, and lets you compare covering costs independently versus sharing that burden.
READ MORE TRY THE SGO SIMULATORChoose Your Tech and Operating Model
Evaluating scholarship-administration platforms feels like the first big decision—but the harder work is operational clarity: what experience families should have, what to manage in-house versus outsource, and how fast you expect to scale.
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