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ARTICLES

Meet AFC Scholarship Fund: The Organization Built for the Education Freedom Tax Credit

The Education Freedom Tax Credit needed a Scholarship Granting Organization ready to run it. AFC Scholarship Fund was built for exactly that.

The Education Freedom Tax Credit is the first federal school choice tax credit in American history. Someone had to build the organization to actually run it. Meet AFC Scholarship Fund.

When the federal government created the Education Freedom Tax Credit (EFTC), somebody had to build the scholarship granting organization to make it happen: to receive donations, manage compliance and get scholarships to the students who need them.

Built on 20 Years of School Choice Advocacy

AFC Scholarship Fund was built by American Federation for Children, the nation’s largest school choice advocacy organization, with more than 20 years of work advancing school choice at the state level. Today, more than 30 states and Washington, D.C. have some form of school choice, much of it driven by AFC’s advocacy. When the federal opportunity finally arrived, AFC was ready.

What AFC Scholarship Fund Actually Does

AFC Scholarship Fund is the 501(c)(3) Scholarship Granting Organization (SGO) built specifically to deploy the EFTC at scale. It receives donations, manages compliance, awards scholarships and tracks every dollar from donor to student across every participating state.

From contribution through fund selection, school matching and final disbursement, AFC Scholarship Fund owns the donor relationship and the data behind it, start to finish. A gift does not pass between several different organizations along the way. One organization is accountable for it, from the moment it is given to the moment it reaches a school.

Two Decades of Proof, Not a New Idea

This isn’t a new organization chasing a new idea. AFC Scholarship Fund is powered by Odyssey’s existing national scholarship infrastructure, combined with American Federation for Children’s advocacy footprint across the states. That combination means the systems already moving scholarship dollars to students today are the same systems built to run the EFTC tomorrow.

For over two decades, American Federation for Children has worked so that “a child’s zip code doesn’t decide the quality of their education.” AFC Scholarship Fund carries that work into a new era. Learn more about AFC Scholarship Fund.

The EFTC Launches in 2027

The EFTC kicks off in 2027, and the mechanics are straightforward. You make a charitable contribution to a qualified SGO like AFC Scholarship Fund. That contribution earns a dollar-for-dollar federal tax credit of up to $1,700, which you claim when you file your federal taxes the following year. The donation comes first. The tax credit follows.

A credit is not the same as a deduction. A deduction only lowers the income the IRS taxes you on, so its value shifts with your tax bracket. A credit comes directly off what you owe, dollar for dollar, no matter your bracket. Give $1,700 and owe $2,000 in federal taxes, and you now owe $300.

There’s no cap on how much you can give. Contributions beyond the $1,700 credit amount are treated as a standard charitable deduction, and if your credit ends up being worth more than you owe in a given year, unused amounts can generally carry forward for up to five years. Because the EFTC is a federal tax credit, donors can contribute to a qualified SGO in any state, not just their own.

Registering now means you will be ready to give the moment donations open.

Register with AFC Scholarship Fund to be ready

The Bottom Line

The EFTC may be new. But the organization behind it is not starting from scratch. AFC Scholarship Fund was built by American Federation for Children on 20 years of school choice advocacy and Odyssey’s national scholarship infrastructure, and it exists to make sure the EFTC works the way it was designed to, from donor to classroom.

Frequently Asked Questions

AFC Scholarship Fund is a 501(c)(3) scholarship granting organization built by American Federation for Children to deploy the Education Freedom Tax Credit. It receives donations, manages compliance and awards scholarships to eligible students.

American Federation for Children, the nation's largest school choice advocacy organization, with more than 20 years of experience advancing school choice at the state level, powered by Odyssey's existing national scholarship infrastructure.

No. It was built on two decades of school choice advocacy across more than 30 states and Washington, D.C., and on scholarship infrastructure already in use nationwide. The Education Freedom Tax Credit gave that experience a new, national program to run.

It manages the entire process from contribution through fund selection, school matching and final disbursement, owning the donor relationship and the data behind it from start to finish.

You donate to a qualified SGO, and that contribution earns a dollar-for-dollar federal tax credit of up to $1,700, claimed when you file your taxes the following year. Contributions above $1,700 are treated as a standard charitable deduction, and any unused credit can generally carry forward for up to five years.

The Education Freedom Tax Credit launches in 2027. You can register now to be ready when donations open.

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.