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ARTICLES

Don’t Build an SGO. Partner With One

How schools and scholarship organizations can access the Education Freedom Tax Credit without building compliance infrastructure from scratch.

The Education Freedom Tax Credit (EFTC) launches January 1, 2027, the first federal school choice tax credit in American history, giving donors a dollar-for-dollar federal tax credit of up to $1,700 for gifts to an approved Scholarship Granting Organization (SGO), like AFC Scholarship Fund.

For schools and scholarship organizations, that is an enormous opportunity. It is also an enormous amount of work.

What It Actually Takes to Build an SGO From Scratch

Building an SGO from scratch means legal filings, state approvals, compliance systems, donor acquisition and technology, all of that before you have funded a single student.

Most organizations, whether an individual school or an existing SGO, do not have the infrastructure to do that on a national scale. Schools should not have to become an SGO just to serve their families, and existing SGOs should not have to rebuild a national donor engine from zero.

The question is not whether the EFTC is worth preparing for. It is whether to build that infrastructure yourself or partner with an organization already building it on a national scale.

You Don’t Have to Build It Alone

Backed by decades of school choice advocacy, AFC Scholarship Fund is building both, the compliance infrastructure and the donor engine, so schools and SGOs don’t have to. That means partners are ready the moment the EFTC activates on January 1, 2027.

AFC Scholarship Fund is designed to be your SGO compliance infrastructure and donor engine, built so that at least 90% of every donation goes directly to scholarships.

How Partnering With AFC Scholarship Fund Works

Whether you are a school or an existing SGO, you can partner with AFC Scholarship Fund through a simple four-step process.

First, register your interest.

Second, AFC Scholarship Fund confirms your eligibility and sets up your co-branded portal, complete with your fund structure and your compliance framework.

Third, in January 2027, your families and donors access the program.

Fourth, when the EFTC activates, AFC Scholarship Fund handles compliance, distribution and reporting, all visible from your co-branded portal.

Getting Ahead of the Game

Every school and every existing SGO faces the same choice as the EFTC approaches: build the legal filings, compliance systems, technology and national donor engine yourselves, or partner with an organization already building it at scale.

AFC Scholarship Fund is building both so you don’t have to, ready the moment the EFTC activates on January 1, 2027.

Ready to get ahead of the launch? Register your interest with AFC Scholarship Fund today.

Frequently Asked Questions

No. AFC Scholarship Fund acts as your SGO, handling compliance, distribution and reporting, so your school or organization can stay focused on your families rather than building infrastructure from scratch.

Running your own SGO means legal filings, state approvals, compliance systems, donor acquisition and technology, all before funding a single student. Partnering gets you that infrastructure and a national donor engine, under your own brand, without building it yourself.

Yes. Partners get a co-branded portal, so families see your school or organization's brand while AFC Scholarship Fund runs the compliance and donor engine behind it.

The Education Freedom Tax Credit activates January 1, 2027. Partners can register their interest now and begin early access ahead of that date.

At least 90%, a federal requirement that applies to every qualified scholarship granting organization, including AFC Scholarship Fund.

Partnership economics are discussed directly with AFC Scholarship Fund's partnerships team. Register your interest to start that conversation.

What’s Next: Contributions to a qualifying scholarship granting organization (SGO) can be made at any point during the 2027 calendar year. When your 2027 federal return is filed, you will claim the Education Freedom Tax Credit and it will be applied directly against your federal tax liability.

Greg Allum, AFC Scholarship Fund team member, smiling in a professional headshot

About the Author

Greg Allum 

Chief Marketing Officer

Greg Allum is Chief Marketing Officer of the AFC Scholarship Fund, where he leads the marketing infrastructure and data strategy behind the Education Freedom Tax Credit — the first federal school choice tax credit in U.S. history. He brings over 15 years of marketing and growth leadership from organizations including Stand Together, GrowthDay, Fuzzy, Jellyfish, and Sony Electronics. Greg holds an MFA in Creative Writing from Pacific University and a BS in Business Administration from Capella University, and is also a published poet and Founder of Ink & Ribbon Press.

Disclaimer: This article is for informational and educational purposes only and does not constitute tax, legal, or financial advice. Tax laws are subject to change. Please consult a qualified tax professional regarding your individual circumstances. The Education Freedom Tax Credit is effective January 1, 2027. Contribution limits and program details are subject to IRS guidance and final program rules.