The payroll option, step by step

For teachers, staff, and employees of participating organizations · about $65 per biweekly paycheck · same take-home pay

Instead of donating out of pocket and waiting until tax season, a small amount from each paycheck funds your contribution, while a matching adjustment to your tax withholding keeps your take-home pay the same.
1

You sign up once, online, in about 5 minutes

Choose your annual contribution (up to $1,700) and the school community you'd like to support. We confirm your details and generate your paperwork automatically.

You do this
2

You update your tax withholding (we give you the exact form)

Because the federal credit reduces the tax you'll owe, you can claim it now by adjusting your own Form W-4 with your employer. We provide pre-filled, step-by-step instructions. It takes a few minutes and you can change it any time.

You do this · it's always your election New to W-4s? See how withholding works →
3

Each payday, two small things happen at once

About $65 less federal tax is withheld from your paycheck, and about $65 goes to the Foundation as your scholarship contribution. The two offset, so your take-home pay doesn't change.

Automatic via payroll
4

The Foundation processes and documents everything

Your contributions go into a dedicated scholarship account. You receive an official acknowledgment for tax filing (the IRS will issue donors a unique donor number under the new program). At least 90% of all funds become scholarships. That's federal law.

We do this
5

At tax time, you claim the credit

Your tax return includes the $1,700 federal scholarship tax credit, which matches the contributions you made all year. We send you a simple year-end statement; most filers just hand it to their preparer or type one number into their tax software.

One line on your return
6

Your school community gets the scholarships

Funds are awarded by the Foundation under federal eligibility rules and paid directly to schools: tuition support, tutoring, technology, trips, and equipment.

We do this

Your paycheck, before and after

BEFORE · A TYPICAL BIWEEKLY PAYCHECK
Gross pay$2,300.00
Federal income tax−$276.00
Scholarship contribution$0.00
Social Security, Medicare, state & benefits−$424.00
Take-home pay$1,600.00
AFTER · WITH THE SCHOLARSHIP PROGRAM
Gross pay$2,300.00
Federal income tax−$211.00 (↓ $65)
Scholarship contribution−$65.00
Social Security, Medicare, state & benefits−$424.00
Take-home pay$1,600.00 ✓

Illustrative example: $1,700 ÷ 26 biweekly paychecks ≈ $65. Actual figures depend on your pay schedule and tax situation.

THE YEAR-END MATH

Contributed over the year: $1,700  ·  Federal tax credit claimed: $1,700  ·  Change in your take-home pay: $0
Scholarships generated for your school community: $1,700, every single year you participate

Try it with your own paycheck

Grab your latest paystub. Three numbers is all it takes. Nothing is saved or sent anywhere; this runs entirely on your screen.

Before any taxes or deductions
Check your paystub date pattern
School employees: how your salary is paid out
Up to the $1,700 federal credit
The "Federal Income Tax" line on your paystub
What actually hits your bank account
YOUR PAYCHECK TODAY
Gross pay
Federal tax withheld
Scholarship contribution$0.00
Other taxes & deductions
Take-home pay
WITH THE SCHOLARSHIP PROGRAM
Gross pay
Federal tax withheld
Scholarship contribution
Other taxes & deductions
Take-home pay

Available beginning January 1, 2027 in participating states. The federal credit is nonrefundable; it offsets federal income tax you owe (at least $1,700 of federal tax liability is needed to use the full credit in one year, and unused amounts carry forward up to five years). Withholding changes are always your own election on Form W-4 and can be reversed at any time. In plain words: this page simplifies how the program works, and it isn't tax advice. Everyone's situation is different, so before you act, please review your plans with your accountant or tax professional, starting with the official sources below.

Sources: IRS · Federal Scholarship Tax Credit · IRS · Tax Withholding (Form W-4) · ED/Treasury Fact Sheet