How to Donate to a Scholarship Fund and Choose the Right SGO

Start with what you want your gift to do

Every SGO on the IRS list earns you the same federal credit: up to $1,700 per taxpayer for gifts made on or after January 1, 2027. So the credit doesn't decide where you give. Your values do. Ask yourself:

• Where? Your own state, your hometown or a state with many families on waitlists. For the federal credit you can live in any state and give to an SGO listed by any state that opted in.
• Who? Federal law caps eligibility at 300% of area median income, but many SGOs focus on lower-income families, students with disabilities, foster children or kids leaving struggling schools.
• What? Some SGOs mostly pay private school tuition. Others fund tutoring, therapies, curriculum or technology. All must stick to qualified K–12 expenses under 26 U.S.C. 530(b)(3)(A).
• How? Some pay schools directly. Others use a digital wallet where families buy from preapproved vendors.

You can't pick an individual child. SGOs are barred from earmarking gifts for a particular student.

Due-diligence checklist

Use this before you give. Most of it takes about 15 minutes.

Questions to ask an SGO directly

1. Are you on your state's 2027 SGO list, and have you registered in the IRS SGO portal?
2. How do I designate my gift as a qualified contribution?
3. When will I get my written acknowledgement and unique donor number?
4. What share of last year's income went to scholarships?
5. What's your average award, and what does it usually pay for?
6. How do you verify household income? (Under the proposed rules: documents like tax returns, or proof of SNAP, TANF, WIC, Section 8 or SSI.)
7. If I live in a state with its own scholarship credit, can my gift qualify for both?

Red flags

• A promise that you can direct the money to your own child or a friend's. That's earmarking, and it's prohibited. Scholarships also can't go to disqualified persons such as major donors' families.
• "Swap" schemes, where two families give to each other's kids. Earmarking rules and IRS matching are designed to catch these.
• No clear answer on donor numbers. Without a donor number on Form 8525, the IRS presumes no qualified contribution.
• Fees to families for applying.
• Pressure to give in 2026. Nothing given before January 1, 2027, earns the federal credit.
• Requests for stock or crypto "for the credit." The federal credit is cash only.
• Not on any list. If a group isn't on a covered state's list, your gift won't earn the federal credit, whatever its marketing says.

If your state has its own credit

Many states give credits for scholarship gifts. Under Treasury's proposed rules, the state credit is subtracted from your qualified contributions before the $1,700 federal cap. Giving more can earn both. Some state programs have preapproval windows that open months before you give, or sell out on day one. Others only allow business donors. Before you pick an SGO, read our guide to the federal scholarship tax credit, then your state's donor guide from the states opted in tracker. If you give through a company, see business tax credit scholarships.

A few examples of SGOs with profiles on Edulist: Step Up For Students, which administers Florida's scholarship programs, and ACE Scholarships, a Colorado-based nonprofit whose site lists tax-credit giving options in Arkansas, Kansas, Louisiana and Montana. A profile is information, not an endorsement. Do your own checks.

How to give, once you've chosen

1. Pledge on Edulist so we can remind you when giving opens. Pick an SGO or ask us to suggest one with families waiting.
2. On or after January 1, 2027, confirm the SGO is on the IRS SGO list.
3. Give cash (check, transfer, card or after-tax payroll deduction), personally, not through your business.
4. Designate it as a qualified contribution. If you're married, each spouse gives their own gift to reach $3,400.
5. Save the acknowledgement the SGO sends by January 31, 2028.
6. File Form 8525 with your 2027 return. Our step-by-step claiming guide has the details.

What your gift can pay for

Families on Edulist save the learning they hope a scholarship will cover: tutoring, reading programs, math curricula and special needs support. Each SGO decides what it funds within the law, and Treasury plans more guidance on qualified expenses. Seeing real requests helps you choose an SGO whose focus matches what families need.

Edulist never handles donations. You give directly to the SGO you choose. This page reflects the statute and Treasury's proposed rules as of October 13, 2026. It is not tax or legal advice.