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Powering educational opportunityone transaction at a time
Infrastructure of Integrity — How scholarship granting organizations and education foundations can scale the federal Federal Scholarship Tax Credit without scaling risk. The Federal Scholarship Tax Credit is leveling the playing field with new opportunities for every child Starting Jan. 1, 2027, the Federal Scholarship Tax Credit (FSTC) will allow individual taxpayers to direct private donations to Scholarship Granting Organizations (SGOs) that support K-12 students, with a dollar-for-dollar federal tax credit of up to $1,700 per individual and up to $3,400 for married couples filing jointly. The FSTC has the power to serve students wherever they are, regardless of their environment — public school, private school, or education at home. Importantly, the program will provide scholarships for eligible students that can be used for approved educational expenses including tuition, tutoring, instructional materials, after-school programming, therapy, and technology. For this vision of educational freedom to be realized, SGOs and other organizations considering participation will need to be supported with a proven, simple-to-use infrastructure of integrity that works for parents, helps fight fraud and simplify reporting, and handles the complicated compliance and vendor-vetting required by federal law.
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