Funding Options
Scholarships, tax credits, and the organizations that make them work.
The Education Freedom Tax Credit (EFTC)
Also known as the Educational Choice for Children Act (ECCA), the Federal Scholarship Tax Credit (FSTC), or §25F. One federal tax credit, three ways it matters — it connects the people who fund scholarships with the families who need them.
- Up to $1,700 in federal tax credit
- For K-12 scholarship donations
- Begins January 1, 2027
- Dollar-for-dollar, not a deduction
- Taxpayers who donate
- Families who need scholarships
- The organizations that link them
How to start a Scholarship Granting Organization (SGO)
The complete, start-from-nothing guide to launching an SGO under the EFTC / ECCA / §25F, written for founders with zero nonprofit experience.
- Incorporating a nonprofit and getting an EIN
- Filing 501(c)(3): Form 1023 vs 1023-EZ, real fees and timelines
- Opening the required separate bank accounts
- Registering to fundraise
- Meeting every §25F operating rule
- Getting on your state's list
- A step-by-step founder checklist
- In this section you will find SGO organizations
The biggest obstacle isn't politics, it's the adoption gap
Once a state opts in and the program is live, what decides whether the credit works is whether ordinary taxpayers actually claim money that pays them back dollar-for-dollar. History says free money gets left on the table: workers skip employer 401(k) matches, and the no-cost presidential campaign checkoff fell from 29% participation to about 4%.
- Awareness
- Paperwork
- Cash-flow timing
- Trust
- Each friction is fixable — adoption is won at the operator layer, not in the political fight
Funding Organizations
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