Preparing Schools and Organizations for a New Federal K-12 Scholarship Program
Expand access to K-12 education
Offer more scholarships each year.
Donors support schools they care about
Tap into your existing community.
Program administration and compliance handled for you
Access funding without extra work.
About the Foundation
K-12 Scholarship Foundation, Inc. is a single-mission nonprofit dedicated to expanding educational opportunity and promoting excellence for K-12 students.
The Foundation will be funded primarily through a new federal tax credit program and works directly with donors, schools, and membership organizations to administer scholarships effectively, transparently, and in full compliance with federal and state regulations.
Understanding How Your School Can Benefit From
The Education Freedom Tax Credit
We help you facilitate donations from your staff with payroll deductions and tax withholding offsets so there’s no cost or impact on your school or your teachers.
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The Federal Scholarship Program
Congress recently enacted a program that will provide $26 billion to support K-12 education nationwide. Beginning in 2027, taxpayers can contribute up to $1,700 per year to qualified nonprofit organizations, such as the K-12 Scholarship Foundation, and receive a dollar-for-dollar reduction in their federal tax liability. In other words, taxpayers can redirect a portion of their federal taxes to K-12 scholarships at no cost to the taxpayer. Donors may earmark scholarships for students attending a specific school or for members of a specific organization.
How Scholarships Support K-12 Students
More than 95% of K-12 students in participating states are eligible to apply for scholarships under the program.
Students attending public schools may receive scholarships to cover tutoring, educational materials and supplies, technology, transportation, after-school activities, and special education programs. Students attending private schools may receive scholarships to cover the full cost of tuition and fees.
All scholarship payments are made directly to schools and approved service providers.
- Up to $1,700 tax credit per individual for qualified donations
- Scholarships can be used for any qualified education expense of an eligible student at any K-12 public, private, or charter school
- Federal law requires Scholarship Granting Organizations to devote at least 90% of income to scholarship awards.
- Eligibility for scholarships is limited by federal income thresholds and other statutory requirements.
How does K-12 Scholarship Foundation, Inc. fit in?
K-12 Scholarship Foundation, Inc. helps public and private schools capitalize on new federal tax credits through a secure, seamless system that makes it easy to raise donations from your existing community.
- No Cost to Your School to Administer: Your school can participate and benefit without paying fees or allocating internal budget resources.
- Seamlessly Facilitated Through Payroll: Participation is structured through payroll deductions, making the process simple and easy for staff.
- Fully Managed and Compliant: We oversee administration and compliance so your school can participate without doing any additional administrative work.
- No cost to your staff to participate: Staff contributions qualify for a federal tax credit, allowing participation without creating a net financial burden.
- Tap Into Your Existing School Community: Your teachers and staff can help generate scholarship funding that supports students at your school.
- Withholdings Adjusted to Offset the Contribution: Your staff's tax withholdings are adjusted to reflect the federal tax credit tied to participation.
Preparing for the 2027 Launch
In preparation for the program’s launch in January 2027, the K-12 Scholarship Foundation is actively working with schools and membership organizations to help them prepare for the program and to expand educational opportunities for students.
The K-12 Scholarship Foundation manages all administrative and regulatory aspects of the program, allowing schools and organizations to participate without cost or compliance obligations.
Interested in Learning More?
You owe it to your community to learn how your school can benefit from the Education Freedom Tax Credit beginning in 2027. Start the conversation to learn more about what this means for your school, and how K-12 Scholarship Foundation can fit into the picture.
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.