An SGO, or Scholarship Granting Organization, is a nonprofit that collects donations and awards scholarships to eligible K–12 students. SGOs verify family eligibility, prioritize students according to federal rules, distribute scholarship funds, and report on how donations are used. They serve as the connection point between donors, families, and schools.

Individual donors can contribute any amount to a qualified Scholarship Granting Organization. However, only up to $1,700 per year qualifies for a 100 percent federal income tax credit. This tax credit ensures that eligible contributions incur no cost to the donor.

Families with K–12 students in opt-in states can apply for scholarships if they meet the income guidelines set by the Federal Scholarship Tax Credit Program. Eligibility is based on household income, and whether the student is eligible to attend a K-12 school. Scholarship Granting Organizations (SGOs) verify all documentation and guide families through the process.

If the state you reside in does not opt in to the EFTC, your student will not be eligible to receive a scholarship. You will still be able to give a charitable donation to SGOs in other states and receive a dollar-for-dollar tax credit of up to $1,700.