The full journey: from a gift to a scholarship

Every moving part between a donor and a student, all carried by the Foundation. This is why donations don't go to a school directly.

Step 1

Your community gives

A parent, teacher, staff member, alum, or neighbor signs up online, chooses an amount up to $1,700, and chooses the school community they support. One time, recurring, or through payroll.

Up to $1,700 each

Step 2

The Foundation receives

Every gift lands in a dedicated scholarship account. The Foundation issues a receipt, safeguards donor and family information, and handles federal compliance.

Secure & recorded

Step 3

Families apply, we verify

Families apply once. The Foundation verifies eligibility: household income up to 300% of the area median, and the student eligible to enroll in public K-12 school.

Most families qualify

Step 4

The Foundation awards

Every scholarship is awarded under the Foundation's own federal criteria, with priority for renewing students and siblings. Donors never direct a gift to a particular student.

Foundation decides every award

Step 5

Your students benefit

Funds are paid out: tuition at private and religious schools, plus tutoring, technology, transportation, class trips, and equipment for public and charter school students.

Public · Charter · Private

−$1,700the gift to scholarships

$1,700less in federal taxes owed

$0net cost to the donor

The loop closes at tax time: the gift can be offset by the federal tax credit, dollar for dollar. For employees giving through payroll, a matching adjustment to their own Form W-4 keeps take-home pay the same all year. The credit is nonrefundable; donors need at least $1,700 in federal tax liability to use it fully, and unused amounts carry forward up to five years.

≥ 90% of every dollar becomes a scholarship. Administration is capped at 10% by federal law, and those costs are covered before a scholarship reaches your school.

Why it flows this way. Donations can't go to a school directly: under the federal program, every gift has to pass through a qualified scholarship organization and become a verified, compliant award first. That single step is what keeps the credit valid, the 90% rule met, and the awards fair, and it is the entire job the Foundation takes off your plate.

Schedule a time to learn more

Sources: IRS · Federal Scholarship Tax Credit · U.S. Dept. of Education & Treasury Fact Sheet · P.L. 119-21 §70411

In plain words: this page simplifies a federal tax program so it's easy to understand. It isn't tax advice, and everyone's situation is different. Before you act, please talk it through with your accountant or tax professional and review the official sources above.

The K-12 Scholarship Foundation, Inc. is a Delaware corporation; its application for 501(c)(3) federal tax-exempt status is pending, and Scholarship Granting Organization listing occurs through each participating state. Contributions are not eligible for the federal credit before January 1, 2027.