EFTC Basics | Educational Guide

Can I Donate to an SGO in Another State?

One of the EFTC’s most powerful features is geographic freedom. Donors can support school choice in any state — and claim the same federal tax credit regardless of where the SGO operates.

Tommy Schultz CEO, American Federation for Children

For thirty years, where a student was born determined what educational options their family could afford. The Education Freedom Tax Credit was designed, in part, to end that.

One of the most significant — and least understood — features of the EFTC is geographic flexibility. The credit is federal. It doesn’t care which state you live in. And it doesn’t restrict which state’s students your dollars support.

How Cross-State Giving Works Under the EFTC

The Education Freedom Tax Credit is a federal credit — not a state credit. That means the credit mechanism doesn’t depend on where the donor or the SGO is located. A donor in Connecticut can contribute to a qualified SGO operating in Alabama and claim the same $1,700 federal tax credit as a donor who gives to a local organization.

The credit is federal. The qualification is federal. The benefit is federal. State of residence is not a factor.

“The geography of educational opportunity is no longer determined by zip code. The EFTC made it a national game.”

Why This Matters

Before the EFTC

State-by-State Giving

School choice programs were state-level only

Donor reach was constrained by geography

States without programs had no national donor access

Impact limited to where you lived

With the EFTC

National Giving

Give to any qualified SGO in any state

Same $1,700 credit regardless of state

Every state’s students can access national donors

Impact goes where you direct it

States where EFTC donors can direct scholarship support

$1,700

Same federal credit regardless of which state you give to

157K

Students AFC has connected to opportunity across 12 states

Free Tool

See your EFTC benefit — regardless of which state you’re giving to.

The credit is the same for every eligible taxpayer in every state.

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What to Consider When Choosing an Out-of-State SGO

Before You Give Across State Lines

Confirm federal qualification. The credit is federal — meaning the SGO must be federally qualified, not just a valid nonprofit in its home state. Ask for documentation of federal qualification status before contributing.

Understand where scholarships go. Some SGOs operate nationally; others focus on specific states or regions. If you want your contribution to reach students in a particular state, confirm that the SGO distributes scholarships in that geography.

Review the SGO’s track record. As with any charitable contribution, due diligence matters. Look for transparency on scholarship distribution, compliance history, and student outcomes — regardless of the SGO’s state.

Frequently Asked Questions

Can I donate to an SGO in a different state?

Yes. The EFTC allows donors to contribute to any federally qualified SGO in any U.S. state, regardless of where the donor lives.

Does the EFTC work the same way for out-of-state donations?

Yes. The federal tax credit is identical regardless of the SGO’s state. The dollar-for-dollar credit of up to $1,700 applies to contributions to any qualifying SGO, anywhere in the country.

Can I choose which state my scholarship dollars support?

Yes. By selecting an SGO that operates in a specific state, donors can direct their support to students in that geography.

Are there restrictions on cross-state SGO donations?

The EFTC imposes no geographic restrictions on donors. Individual SGOs may operate in specific states or regions — review the organization’s scope if geographic targeting matters to you.

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.