Helping Your School Access a New Federal K-12 Scholarship Program
Your Mission and Our Mission in Partnership
Your school is dedicated to educational excellence and helping your students reach their full potential. The K-12 Scholarship Foundation raises scholarship funds and awards K-12 scholarships. Together, we can help make scholarships available to students attending your school, at no cost to your school or the families you serve.
How the Program Works
Congress recently enacted a federal tax credit program that will make billions of dollars available to support K-12 education nationwide. Supporters of your school can redirect up to $1,700 of their federal taxes each year to fund K-12 scholarships.
Donors may earmark their contributions for scholarships awarded to students attending your school, helping support scholarships for its students, including both current and future students.
Federal law requires that at least 90% of all funds raised through the program be awarded as scholarships, with no more than 10% used for fundraising, administration and compliance.
Why Schools Participate
Participation in the scholarship program allows schools to expand educational opportunities for students while strengthening their scholarship resources. Key benefits include:
- Direct support for your students. Donations can be earmarked specifically for scholarships awarded to students attending your school.
- Strengthened scholarship resources. Scholarships funded through the program can support students who might otherwise rely on your school’s own financial aid, helping preserve those resources for other priorities or for additional students.
- No financial cost. Participation does not require financial contributions from your school or its families.
- Broad-based participation. Because donors receive a dollar-for-dollar reduction in their federal taxes, the program encourages broad participation from parents, alumni, grandparents, and members of the school community - including faculty and staff.
- Transparency and accountability. Through the Foundation’s online platform, your school can track donations, scholarship applications, and scholarship payments.
Your Role
Participating schools help connect families and supporters with the scholarship program. In particular, participating schools may:
- Inform families and supporters about the scholarship program and how they can participate.
- Encourage supporters to earmark their donations to benefit students attending your school.
- Submit scholarship recommendations through the Foundation’s online platform on behalf of eligible students.
Our Role
The K-12 Scholarship Foundation administers all operational, administrative, and compliance aspects of the program. In particular, the Foundation will:
- Prepare information materials customized for your school community.
- Process and track all donations.
- Issue donors the receipts required for tax purposes.
- Earmark and safeguard scholarship funds.
- Receive and process scholarship applications.
- Verify student eligibility and confirm enrollment.
- Ensure compliance with all federal and state program requirements.
- Pay scholarships directly to your school.
- Whenever possible, scholarships are structured to cover the full cost of tuition and fees.
All final scholarship decisions are made by the Foundation in accordance with applicable law and its charitable mission.
Scholarship funds are paid directly from the Foundation to the receiving schools, ensuring that scholarships are applied directly to tuition and required school fees.
Step-by-Step Program Process
The following steps illustrate how the program operates in practice:
- The K-12 Scholarship Foundation provides customized information materials and an online platform that allows donors to participate easily and earmark donations to benefit your school.
- Your school shares this information with families and supporters and encourages their participation and earmarking of donations.
- The Foundation receives donations, issues the required tax receipts, safeguards the funds, and provides full transparency throughout the process.
- Your school submits scholarship recommendations through the online platform on behalf of eligible students.
- The Foundation verifies student eligibility, confirms acceptance to the school, and ensures compliance with all federal and state program requirements.
- Scholarships are paid directly to your school to cover tuition and required school fees.
- Your school can monitor participation, funds raised, applications submitted, and scholarships awarded on the Foundation's online platform.
Legal and Compliance Considerations
Before the program begins in January 2027, a legally binding cooperation agreement will ensure that:
- Your school’s donor and family information will not be shared with third parties.
- The Foundation’s online platform will implement appropriate data security safeguards to protect student information and the personal and financial information of donors and participating families.
- All donations and scholarships are processed in full compliance with IRS requirements.
- The K-12 Scholarship Foundation assumes full responsibility for compliance with all applicable federal and state regulations.
- Your school will be able to review and audit earmarked donations and student scholarship applications through the Foundation’s online platform.
Interested in Learning More?
Frequently Asked Questions
How does K-12 Scholarship Foundation fit into this process?
K-12 Scholarship Foundation serves as the scholarship granting organization and program administrator. We educate schools, coordinate participation, ensure compliance with federal and state regulations, and oversee how funds are allocated as scholarships to support participating schools and their students.
How can it be that there is no cost to the school or staff who participate?
Staff contributions qualify for a full federal tax credit in participating states. Because the contribution is offset by the tax credit, participation does not create a net financial cost, and there is no cost to the school to implement the program.
How are the contributions offset so staff do not face a financial burden?
Participation is facilitated through payroll and managed by a third party financial processor. Tax withholdings are adjusted to account for the federal tax credit, allowing contributions to be made in a structured and manageable way.
Are our staff’s contributions used to support scholarships at our school?
Yes. K-12 Scholarship Foundation allocates scholarship funding in a way that prioritizes the participating school community, so funds generated through your school are used to support scholarships that benefit your students.
How does the Education Freedom Tax Credit work?
The Education Freedom Tax Credit allows individuals to contribute to qualified scholarship granting organizations and receive a federal tax credit for their contribution. These funds are then used to provide scholarships for eligible students.
Who decides how scholarship funds are awarded?
K-12 Scholarship Foundation oversees the scholarship process and allocates funds in accordance with program guidelines, with the goal of supporting participating school communities while maintaining full compliance with all regulations.
How do I know if my state is participating?
The program is available in states that choose to participate. We can help you determine your state’s status and guide your school through the next steps if the program is available in your state.
Why should I take action now if the tax credit does not begin until 2027?
The period before 2027 is the preparation phase. Schools that engage early can educate their staff, complete onboarding, and ensure they are positioned to participate as soon as the program begins. Early participation also helps ensure your school is included in the initial rollout, allowing scholarship funding generated through your community to be directed to your students rather than going unused or benefiting other institutions.