Powering educational opportunity one transaction at a time
Infrastructure of Integrity — How scholarship granting organizations and education foundations can scale the federal Education Freedom Tax Credit without scaling risk.
The Education Freedom Tax Credit is leveling the playing field with new opportunities for every child
Education freedom tax credit
Starting Jan. 1, 2027, the Education Freedom Tax Credit (EFTC) will allow private donations from individual taxpayers (up to a $1,700 dollar-for-dollar federal tax credit) to be directed to Scholarship Granting Organizations (SGOs) supporting K–12 students.
The EFTC 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 fights fraud and simplify reporting, and handles the complicated compliance and vendor-vetting required by federal law.
Donor
SGO
Student
Per taxpayer
$1,700
dollar-for-dollar federal tax credit
Nationwide
Uncapped
no limit on total credits
Timeline
Jan 2027
program goes live
Where do you fit?
Established SGOAdd EFTC to your existing state programsEstablishing an SGOExplore becoming an SGOEducation FoundationYes, this works for you too.
What becoming a SGO involves
1
Confirm 501(c)(3) status
The baseline to qualify as an SGO.
2
Get on your state’s list
Every state has to opt-in annually and submit a list of SGOs to the U.S. Treasury.
3
Secure donations
Determine any specific criteria (scholarship use, school designation) and build donor pipeline.
4
Scholarship application & distribution
Award student scholarships, using at least 90% of donations.
Yes, this is for public schools too.
The EFTC isn’t only about private schools. An education foundation can become a qualifying SGO and direct scholarship dollars to the students being served within public schools, helping attract and retain families and close the enrichment gap.
Tutoring & supplemental support
Afterschool programming
Technology & learning materials
Supplemental services for students with special needs
Statewide programs
31 states have opted in. Is yours one of them?
31states opted in
Taxpayers can donate beginning in January 2027, but families can only benefit in states that elect to participate: and Governors must opt in each year. Here’s where things stand today.
Opted in
Not yet opted in
Will not opt in
Hover a state to see its status.
Source: Ballotpedia, as of March 2026. Status changes as governors elect to participate, so keep this map current.
ClassWallet offers a turnkey, end to end solution designed to help SGOs raise the money, manage compliance, and facilitate the distribution of funds. Our proprietary payment infrastructure is the only one of its kind offering multi-program wallet technology so that your scholarship recipients can manage EFTC and state-level ESA funds with separate rules using a single login.
$6.7B+ Distributed
The platform trusted by the most states
12M Completed Transactions
Real-time, secure, reliable and convenient no matter what the program rules
37 Current States
Proudly serving public, private and home school students all across America
99.95% Platform Uptime
Backed by industry-leading security — SOC 1 Type II & SOC 2 Type II, independently audited every year
Ready to bring EFTC to your organization?
Talk with our team about the program and administering it through the ClassWallet platform.
Donor
Donor
SGO
Student
Tutoring & supplemental support
Tutoring & supplemental support
Afterschool programming
Technology & learning materials
Supplemental services for students with special needs
