A credit worth up to $1,700 per taxpayer needs a reliable way for the IRS to confirm that a claimed gift actually happened, to a real qualified organization, from a real donor. Treasury’s June 2026 preview of the forthcoming rules describes exactly that mechanism: a unique donor number.
How it works
When a donor makes a qualifying cash gift, the Scholarship Granting Organization (SGO) issues a written acknowledgment that includes a unique number generated under a method the IRS provides. That number, not the donor’s name or Social Security number, is what ties the gift to the SGO’s records and, eventually, to the donor’s tax return.
Why it exists
Two problems shaped this design. The first is privacy: without a number-based system, SGOs might otherwise feel pressure to collect Social Security numbers from every donor, creating a large, sensitive dataset that becomes a target for breaches. The donor number removes that need entirely; an SGO can report a gift to the IRS without ever holding a donor’s SSN. The second is fraud prevention: because the SGO reports each contribution to the IRS under the same number the donor later reports on their return, the IRS can match claimed credits to real, recorded contributions, the same logic that makes familiar systems like W-2 and 1099 reporting work, applied here to scholarship gifts.
The flow, step by step
A donor makes a cash contribution to a qualified SGO in a participating state. The SGO sends a written acknowledgment showing the total qualified contribution and the unique donor number. The SGO reports the gift to the IRS under that number. The donor reports the same number on their federal return when claiming the credit. The IRS matches the two records, and the credit is substantiated, with no Social Security number ever passing to the SGO.
What this means for donors
Keep the written acknowledgment; the donor number lives on it, and it will be needed at tax time. Donors should expect that a legitimate, well-run SGO, including AFC Scholarship Fund, will not ask for a Social Security number to issue this acknowledgment. And the credit’s other rules still apply regardless of the receipting mechanics: it remains capped at $1,700 per return and is non-refundable.
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What this means for SGOs
For an SGO, the donor number is a reporting obligation, not a convenience feature. It requires generating a number for every donor, placing it on every acknowledgment, reporting contributions to the IRS under it, and keeping books reconciled so every claimed credit traces back to a recorded gift. Getting this wrong puts donors’ credits at risk of being questioned, which is the fastest way to lose the trust an SGO has worked to build.
One honest caveat
This system comes from Treasury’s June 2026 preview of the forthcoming regulations, not from a final rule. Treasury has said states, SGOs, and taxpayers will be able to rely on the preview for the 2027 tax year, and full regulations are expected by the end of September 2026. Build donor communications around this design, and watch for the final rule as it publishes.
No. Under the system Treasury has previewed, a donor never hands a Social Security number to the scholarship granting organization. Instead, the SGO issues a unique donor number on a written acknowledgment, reports the contribution to the IRS under that number, and the donor reports the same number on their federal return.
From the SGO you donated to. When you make a qualifying contribution, the SGO provides a written acknowledgment that includes your unique donor number. Keep that document; you will need the number to claim the credit.
It is a preview, not yet a final rule. Treasury described this system in its June 2026 preview and said the design can be relied on for the 2027 tax year, but full regulations, expected by the end of September 2026, could adjust some mechanics.
