What your SGO needs in place before January 2027.
The federal Education Freedom Tax Credit goes live January 1, 2027. Here's the practical checklist of what a Scholarship Granting Organization needs to be ready, whether you build it, buy it, or run it on SGO Software.
Stand up the organization
- 501(c)(3) status confirmed, and you are not a private foundation.
- Board, bylaws, and a conflict-of-interest policy in place.
- Bank account, accounting, and recordkeeping set up.
- On your Governor's §25F submission list (and your state program's roster, if applicable).
Collect donations
SGO Software does this- Accept ACH, card, PayPal, and payroll gifts, one-time and recurring.
- Verify donor identity (KYC) before money moves.
- Generate a per-donor §25F receipt for every gift.
- Let donors direct gifts to a state and school you control.
Award scholarships
SGO Software does this- Intake applications from families, with both parents able to access one application.
- Collect income and residency documents securely.
- Run needs-based eligibility, AMI lookup and the 300%-of-poverty calculation.
- Issue award letters and notifications from the decision.
Fund schools
SGO Software does this- Onboard partner schools and capture signed agreements.
- Track a per-student disbursement ledger that reconciles.
- Handle mid-year transfers without breaking the records.
Stay compliant
SGO Software does this- Track the 90/10 administrative cap continuously, from day one.
- Generate state-specific and federal §25F reports from one ledger.
- Keep a complete, reconstructable audit trail.
Sections 2 through 5 are SGO Software, out of the box.
Standing up the organization (section 1) is yours, and our step-by-step guide to starting an SGO walks you through it. Everything after it, collecting donations, awarding scholarships, funding schools, and staying compliant, is what the platform handles. See how the compliance works.
Want a hand getting ready?
We’ll walk your checklist with you and show you where the platform fits.
Preparing your SGO for January 2027?
See the platform that runs donor collection, family applications, school disbursement, and §25F reporting end to end. Talk to us early.