Federal scholarship tax credit
Need-based scholarships for K-12 students.
EFTC Scholarship Fund is a new nonprofit formed to be a scholarship granting organization under section 25F of the Internal Revenue Code. We will award need-based scholarships to elementary and secondary students in states that take part in the federal scholarship tax credit.
Applying for 501(c)(3) recognition. Contributions open in 2027.How it works
From a donor's gift to a student's tuition.
Section 25F lets individuals receive a federal tax credit for gifts to a scholarship granting organization that a participating state has listed. Here is how the Fund will use those gifts.
A donor gives
Starting with contributions made on or after January 1, 2027, an individual can receive a federal tax credit of up to $1,700 for cash contributions to a listed scholarship granting organization. Donors choose the participating state their gift supports.
The Fund awards scholarships
Families apply. We verify household income and award scholarships by need, following the order section 25F sets: prior recipients first, then their brothers and sisters.
The school is paid directly
Scholarships pay qualified education expenses, mainly tuition and fees, and we pay the school directly. Schools return anything that exceeds a student's costs.
Who we serve
Built for families, donors and schools.
Families
K-12 students in households at or below 300% of the area median gross income, in states that list the Fund.
Donors
Give to the state you choose, and ask that your gift support students at a participating school.
Schools
Any eligible K-12 school can join by signing our participation agreement. Donors give to the Fund directly.
Our commitments
Clear rules, written down.
Every award follows the Fund's written rules, adopted in its bylaws.
- Awards based on financial need, never by lottery.
- Household income verified before any award.
- Scholarships paid directly to the school.
- No donor can name a particular student, including their own child.
- At least 90% of the Fund's income spent on scholarships by the end of the following year.
- Any deal with a director's company in writing, at or below fair market value, and approved in advance by an independent person.
Where we stand
A new fund, getting ready for 2027.
- October 29, 2026
Incorporated
Formed in Delaware as a nonstock, nonprofit corporation organized exclusively for charitable and educational purposes.
- Now
Applying to the IRS
We are applying for recognition as a public charity under section 501(c)(3).
- January 1, 2027
The credit begins
The federal credit applies to contributions made on or after this date, to organizations on a participating state's list.
- 2027
Contributions and applications open
We open contributions and family applications in each state once that state lists us.
Questions about the Fund?
Write to us any time.