The tax credit program

A New Opportunity for Education Foundations Nationwide

Connecting Education Foundations to the Federal Scholarship Tax Credit

A new era of opportunity is beginning for education foundations across America.

Beginning January 1, 2027, the Federal Scholarship Tax Credit (FSTC) will allow eligible individual taxpayers to receive a federal, nonrefundable tax credit of up to $1,700 for qualified contributions to approved Scholarship Granting Organizations (SGOs). Participating SGOs will use these contributions to provide scholarships for qualified elementary and secondary education expenses.

Transforming the National School Foundation Association

The National School Foundation Association (NSFA) is transforming its existing 501(c)(3) organization into a national SGO platform designed specifically to help education foundations participate in this emerging opportunity.

NSFA's mission is to strengthen education by supporting community-based organizations that provide scholarships, inspire charitable giving, and create transformative opportunities for learners of all ages.

Through its SGO initiative, NSFA will provide a framework through which qualifying education foundations can participate in the Federal Scholarship Tax Credit while maintaining their connection to the communities and students they serve.

A National Platform. A Local Impact.

Education foundations understand their communities. They know the students, schools, families, educators, and educational needs that matter most.

NSFA is building the infrastructure to help education foundations translate that community knowledge into expanded scholarship opportunities.

The NSFA SGO model is intended to provide participating education foundations with access to:

• Federal Scholarship Tax Credit opportunities for eligible individual donors
• A national SGO infrastructure designed specifically for education foundations
• Scholarship administration and compliance support
• Donor engagement and fundraising resources
• Policies, procedures, forms, and operational standards
• Technology and administrative infrastructure
• Training and technical assistance
• A national network of education foundations working together to expand educational opportunity

Empowering Education Foundations to Do More

The Federal Scholarship Tax Credit creates a new pathway for individuals to direct charitable dollars toward scholarships and qualified educational expenses. Eligible scholarship expenses can extend beyond tuition and may include items such as tutoring, books and supplies, certain special-needs services, extended-day programs, and computer technology and internet access, subject to applicable federal requirements.

For education foundations, this represents an opportunity to expand their role as community-based partners in educational opportunity.

NSFA is building the bridge between the federal tax credit and the education foundations serving communities across the nation.