Established SGOAdd EFTC to your existing state programsEstablishing a SGOExplore becoming a SGOEducation FoundationYes, this works for you too.
What becoming a SGO involves
1
Confirm 501(c)(3) status
The baseline to qualify as a 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.
The Challenge of Operating an SGO at Scale
While FSTC creates a significant new funding source, successfully operating an SGO requires substantial operational infrastructure.
The $1,700 per-donor contribution is relatively small individually. Meaningful impact requires high participation volume. That means SGOs need to be built to scale.
Donor Acquisition & Stewardship
SGOs need active fundraising to survive. Without robust donor management, they cannot generate or sustain scholarship funding.
Scholarship Distribution
Getting scholarship dollars to families quickly through controlled mechanisms that prevent misuse and maintain program integrity.
Expense Approval & Compliance
Every scholarship dollar must go toward qualified K-12 education expenses. Manual review of purchases at scale creates delays, errors, and compliance exposure.
Family Eligibility Review
Verifying household income (300% of area median), enrollment, and student eligibility without burdening families or creating audit risk.
Homeschool & Nontraditional Expense Management
Homeschool families have diverse, distributed spending needs. Traditional tuition reimbursement models may not fit. A fund management platform designed for scholarship distribution and expense controls is essential.
Reporting & Audit Readiness
SGOs must demonstrate 90%+ income allocation to scholarships, track spending per student, and be audit-ready. Manual tracking is unsustainable at volume.
Why ClassWallet
Proven at Scale
ClassWallet’s ability to operate at scale is demonstrated by our work with a single education scholarship program that distributes nearly $1 billion annually through our platform. To date, ClassWallet has helped programs administrate more than $7 billion across 38 states, benefiting an estimated eight million children.Â
More than $7.5B
Public Funds Distributed
1.3M
Recipients Funded
14M
Marketplace Transactions
$~1B
Annual Dist. (Single Client)
38
States of Operation
Over 1000
Programs Served Nationwide
500
Approved Vendors
12+
Platform Exp. (Yrs)
Ready to bring EFTC to your organization?
Talk with our team about the program and administering it through the ClassWallet
platform.
