The FSTC 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.
These are scholarships awarded to students, funded by donors in your community, at no cost to your general fund.
Every district has the same list of things it cannot fund.
The FSTC reaches that list directly.
Tutoring and supplemental instruction
for students who need more than the school day allows
Afterschool and summer programming
that keeps learning continuous
Technology and learning materials
in the hands of students who don't have them at home
Specialized support
for students with IEPs and 504 plans
PER TAXPAYER
$1700
dollar-for-dollar federal tax credit
NATIONWIDE
Uncapped
no limit on total credits
TIMELINE
Jan 2027
program goes live
Three Paths into the Program
Where do you
fit?
You already have an education foundation.You have the 501(c)(3), the board, and the donor relationships. Becoming a qualifying SGO is an expansion of what you already do, not a new organization.You have a booster club or PTO structure, but nothing district-wide.The FSTC strengthens the case for establishing a district-wide education foundation. The donor incentive is now federal and uncapped.You'd rather partner than build.Not every district needs its own SGO. An existing SGO in your state can designate scholarships for students in your schools.
What becoming a SGO involves
1
Confirm 501(c)(3) status
2
Get on your state's list
Every state opts in annually and submits its SGO list to the U.S. Treasury.
3
Secure donations
Set your criteria and build the donor pipeline.
4
Award and distribute.
At least 90% of donations must reach students as scholarships.
Learn More About The Federal Tax Scholarship Credit
Infrastructure of Integrity – How Scholarship Granting Organizations (SGOs) Can Scale FSTC Without Scaling Risk
The New Era for School Choice – A Roadmap for Private Schools
Public Education and the FSTC – A Roadmap for Public Schools
Why ClassWallet
The Infrastructure of Integrity Underneath Every Scholarship
Raising the money is the visible work. Proving every dollar was spent correctly is the work that determines whether the program survives its first audit.
ClassWallet is the payment and compliance infrastructure behind public education funding programs in 37 states. Our multi-program wallet is the only technology of its kind, which means a student receiving scholarships from more than one source manages all of them under their separate rules with a single login.
