Questions & Answers
Comprehensive guidance for establishing a Scholarship Granting Organization for the 2027 federal tax credit.
What is an SGO?
An SGO is a specialized nonprofit entity established under IRC Section 25F to administer federal education tax credits for scholarship grants. It is distinct from a standard 501(c)(3) organization.
Is a 501(c)(3) automatically SGO-ready?
No. While a 501(c)(3) provides tax-exempt status, it does not meet the specific IRS requirements for an SGO. You must establish a separate SGO entity to qualify for the $1,700 federal credit.
Which states participate in the 2027 credit?
Participation varies by state. We provide a detailed state-by-state map of participating states and guidance for those in transition or awaiting official guidance from their state agencies.
What are the operational requirements?
SGOs must have specific bylaws, conflict-of-interest policies, and scholarship procedures in place. We provide comprehensive templates and implementation guidance to ensure full compliance.
What are the ongoing compliance responsibilities?
SGOs are required to file annual Form 990 and maintain rigorous records. We offer ongoing compliance support to ensure your organization remains in good standing with federal and state authorities.