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The Do’s and Don’ts of Successfully Implementing the New Federal Scholarship Tax Credit Program at Your School The new Federal Scholarship Tax Credit program, sometimes referred to as EFTC, has the potential to completely reshape how schools approach affordability, advancement, and long-term sustainability. But schools need to understand something early: This program will not maximize itself automatically. The schools that see the strongest results will likely not be the schools that simply “sign up” for the program. They will be the schools that strategically prepare for it, educate their communities, build strong partnerships, and fully commit to implementation. As schools across the country begin preparing for the rollout of the new federal program, here are some of the biggest do’s and don’ts we believe schools should understand now. DO: Start Preparing Before Your State Officially Opts In One of the biggest mistakes schools can make is waiting until implementation is finalized before beginning preparation. The schools that will likely see the strongest long-term results are the schools already: Educating leadership teams Building donor strategies Strengthening advancement infrastructure Creating communication plans Developing SGO relationships Preparing operational systems If your school waits until the program officially launches to begin planning, you may already be behind. Preparation matters. DON’T: Assume This Program Will Run Itself Many schools mistakenly believe scholarship programs are simply: “Families apply, donors give, and everything works out.” That is not how sustainable scholarship growth happens. The new Federal Scholarship Tax Credit program will likely require: Parent education Donor education Community outreach Advancement execution Strategic communication Ongoing relationship management Schools that treat this as a passive funding opportunity may struggle to maximize its potential. DO: Educate Families Early and Often Right now, most families have no idea what the new Federal Scholarship Tax Credit program actually is. Many people still confuse: Scholarship tax credits Vouchers Government appropriations Financial aid ESA programs If schools do not proactively educate families, confusion will fill the gap. The schools that will thrive under this program are the schools willing to: Hold informational meetings Create simple explanations Provide repeated communication Walk families through the process Make the program feel approachable Education builds trust. Confusion creates hesitation. DON’T: Treat SGOs as Vendors This is one of the most important lessons schools need to understand early. Scholarship Granting Organizations (SGOs) are not just transaction processors. They are essential partners. The schools that will likely experience the strongest growth are the schools building collaborative relationships with SGOs before implementation even begins. Schools should be asking: Which SGO is the best fit for our mission? How do we collaboratively support donor engagement? How do we create a strong experience for families? How do we align communication and outreach? The future of this program will depend heavily on strong collaboration between: Schools SGOs Advancement teams Families Donors DO: Build a Real Donor Development Strategy This is one of the largest misconceptions surrounding the new federal program. The existence of a tax credit does not automatically create donor participation. Donors still need: Education Relationship-building Trust Communication Follow-up Community connection The schools that simply wait for donors to appear will likely struggle. The schools that intentionally build donor education and outreach strategies will likely have a significant advantage. DON’T: Ignore Your Public School Community One of the most misunderstood parts of the new Federal Scholarship Tax Credit program is that many states may structure implementation in ways that support a variety of educational services and student needs, not just private school tuition. That means public school families may also become important stakeholders in this conversation. Schools and organizations that approach this program with an “us versus them” mindset may miss major opportunities for collaboration and community support. The conversation around educational access is becoming broader. Schools should prepare accordingly. DO: Align Your Tuition and Financial Aid Strategy Schools should already be evaluating: Tuition structure Financial aid philosophy Scholarship allocation strategy Accessibility goals Enrollment growth planning The schools that thrive under the new federal program will likely be the schools that view scholarship funding as part of a larger sustainability and accessibility strategy. Not just supplemental funding. DON’T: Create Confusion Through Mixed Messaging As excitement grows around the new Federal Scholarship Tax Credit program, schools must be careful not to overwhelm families and donors with: Too many acronyms Conflicting explanations Multiple disconnected outreach efforts Unclear processes Poor communication between organizations Clarity matters. The schools that build trust will likely be the schools communicating consistently, simply, and collaboratively. DO: Understand That Implementation Is Ongoing This is not a “one-time setup” opportunity. The schools that will likely experience long-term success are the schools committed to: Continuous family education Ongoing donor outreach Relationship development Community engagement Strategic refinement year after year The schools treating this as a long-term advancement strategy rather than a temporary funding opportunity will likely position themselves best for sustainability. Final Thought The new Federal Scholarship Tax Credit program may become one of the most transformational educational funding opportunities schools have seen in decades. But successful implementation will require far more than simply opting in. It will require: Leadership Communication Strategy Collaboration Relationship-building And intentional execution At , we believe the schools preparing now, educating now, and building strong collaborative foundations now will be the schools best positioned to create lasting impact for students and families in the years ahead.

DFER’s New Projections on the Federal Tax Credit Program Are a Game-Changer Every once in a while, data comes out that makes you sit back and say, This could change everything. That is exactly how I felt looking through the new projections that Democrats for Education Reform (DFER) released on the Federal Scholarship Tax Credit program. For anyone following the rollout of the new federal tax credit law set to begin in 2027, these projections are some of the clearest and most compelling evidence yet of what this program can unlock for students across the country. And honestly, the numbers are incredible. A Clear Breakdown of Funding Potential, State by State What I appreciate most about DFER’s work is how they took a complex policy and broke it into something every parent, educator and policymaker can understand: How much funding students in each state could receive if their state opts into the new federal tax credit program. Their detailed state-by-state analysis is published here : https://www.dfer.org/2025/10/06/new-data-projects-potential-24-billion-boost-for-students-through-educational-choice-for-children-act-ecca-2/ One number immediately jumped out at me. In a state like Pennsylvania, the projection is over $967 million dollars. Nearly a billion dollars in potential educational support including tutoring, after school programs, learning materials, scholarships and more, all available if the state opts in and families participate. That is not theoretical. That is life changing. Why This Matters for Schools and Students This program gives students access to things that often fall through the cracks in traditional school budgets: Tutoring After school programs Learning materials Technology and internet access Enrichment programs Scholarships Because taxpayers can redirect up to $1,700 in federal tax liability, nonprofit SGOs can distribute support directly to students who need it most. It is simple. It is powerful. It is long overdue. A Huge Opportunity If States Seize It The data also highlights something important: States must opt in before students can benefit. This is not automatic. It requires leadership. It requires action. And it requires a willingness to innovate instead of sticking with business as usual. DFER’s projections make it clear what is at stake. Billions of dollars that could change a child’s learning experience or be left untouched. For Those of Us Working in School Advancement, This Is Fuel At RedefinED, our work revolves around helping schools access the funding and resources they need to grow, serve and support more students. These projections give us more than numbers. They give us strategy, clarity and momentum. The opportunity ahead is one of the biggest in modern education. And DFER just gave the country a blueprint for what is possible. Now the Question Is: Who Will Step Up The federal program is coming. The resources are there. The need is undeniable. DFER laid out the potential. Now we need leadership, action and urgency to turn that potential into real change for students. If you have not reviewed the projections yet, I highly recommend digging in. They are inspiring, energizing and a powerful reminder of how much brighter the future could be for students across this country. Return Home

The new federal tax credit program has one simple truth: with a $1,700 cap per taxpayer, success is not about cultivating just a few high-income donors. Success will come from building a movement of everyday people—parents, alumni, parish members, and community supporters—each giving what they can and knowing it matters. This program is a numbers game, yes. But it is also much more: it is an invitation to deepen relationships, strengthen your school’s community, and create a grassroots engine that can sustain scholarships for years to come. Why focusing only on wealthy donors will fail Many schools instinctively look to their highest-income families when new fundraising opportunities arise. But in this program, that approach is shortsighted. If you only focus on the top of your donor pyramid, your efforts will stall. Why? Because the cap is $1,700. That means a single high-income donor can give no more than a middle-income family. And statistics show that households making between $50,000 and $100,000 actually give a larger share of their income to charity than households in the $100,000 to $250,000 range. The very families you might overlook could become the most reliable and generous supporters when measured proportionally. Share of income: where average-earner donors punch above their weight Multiple analyses confirm that lower and middle-income households give a larger share of their income than the wealthiest. The Chronicle of Philanthropy’s long-running How America Gives report shows this clearly through its “giving-ratio” method, which calculates donations as a share of adjusted gross income. That means a school’s true strength is not in cultivating a handful of major donors but in activating a broad base of regular income earners. This is where trust, storytelling, and stewardship matter most. Building a grassroots movement This program creates an unprecedented opportunity to make fundraising community-driven: Parents and grandparents can redirect part of their taxes to scholarships, making them invested partners in the school’s success. Alumni can give back in a way that feels tangible and personal, funding the very opportunities they once benefited from. Parish members and neighbors can see themselves as part of something bigger, helping families in their community access a life-changing education. Each gift may be modest in isolation, but collectively, they transform what is possible for schools. How to turn $1,700 into a movement Set a clear numeric goal. Break it into the number of donors you need, not just the dollar amount. For example, $1 million raised = 588 donors at the $1,700 cap. Stand up a simple CRM. Track every prospect and donor. Create lists by segment—parents, alumni, parish, local businesses—and make sure every conversation is logged. Be consistent in outreach. Two call blocks a week, one email wave, one story posted to social, one stewardship touch. When your community sees and hears from you consistently, participation grows. Make giving simple. One link. One explainer. One process. The fewer steps, the more donors you will secure. Steward relentlessly. Thank within 24 hours. Share stories that connect the gift to impact. Invite donors to spread the word. Create belonging. The mission comes alive here At RedefinED, we often remind schools that fundraising is not just about dollars, it is about relationships. This federal program is built for that philosophy. It invites you to sit across from families, share your mission, and ask them to be part of something bigger than themselves. Grassroots fundraising does not just raise money. It strengthens your community. It aligns perfectly with the mission of education: bringing people together to invest in the future of children. A numbers game with a heart When you boil it down, here is the formula: One person = up to $1,700. One hundred people = $170,000. One thousand people = $1.7 million. It is not just math. It is a movement. If your school builds this broad, community-first approach, you will raise more than money. You will raise awareness, loyalty, and lasting trust. And that is the true win of this program: not just more scholarships, but a community bound together by the mission to make education accessible to every child. Final word The federal tax credit program is an opportunity to redefine how schools think about advancement. Stop chasing only the wealthy. Start cultivating everyone. When you mobilize hundreds or even thousands of average income donors, your school does not just raise funds, it builds a grassroots movement for students. At RedefinED, this has always been our focus. We have spent years proving that when regular people come together with a shared mission, they can make a huge difference for schools. And now, we have the chance to do it on a scale this country has never seen before. This is more than fundraising. It is a national moment to bring millions of people together around the same mission—families, neighbors, alumni, and communities all choosing to use what they already have to open doors for children. Instead of narrowing our focus to a few wealthy donors, let’s cast the net wide. Let’s invite everyone to the table. Because when we do, we unlock not just dollars, but hope, opportunity, and lasting change for students across America. Return Home

The passage of the Educational Choice for Children Act (ECCA) has opened doors for families and schools across the country. For the first time, individual taxpayers can direct federal tax dollars toward scholarships — creating a brand-new stream of funding that has the potential to reshape private education. But here’s the reality: ECCA is not just about fundraising. Yes, donors matter. Yes, building pipelines of individual givers is essential. But if your school views ECCA strictly through the lens of raising money, you’ll miss the bigger opportunity. The schools that thrive in this new era will be the ones that prepare across fundraising, marketing, and admissions — aligning all three to attract, enroll, and retain more students. 1. Fundraising: Building the Engine At the core of ECCA readiness is the ability to engage individual taxpayers. Unlike corporate tax credit programs, this is about volume and relationships. Hundreds of small- and mid-sized donors, giving year after year, fuel the program. What schools need to do: Develop donor pipelines now. Parents, alumni, parishioners, and community supporters are your base. Educate them. Most people don’t understand how tax credits work. Schools must provide simple, clear resources. Invest in systems. Donor tracking, receipting, and stewardship can’t be handled on spreadsheets anymore. But raising dollars is only step one. To maximize the impact, those dollars must flow seamlessly into enrollment growth. That’s where marketing and admissions come in. 2. Marketing: Owning the Narrative ECCA dollars expand access — but only if families know about them. Parents who’ve never considered private education before will be curious, cautious, and hungry for information. Schools must be ready to meet them with a strong, consistent message. What schools need to do: Update your website. Clear ECCA information should be front and center. Families should see at a glance how scholarships make your school accessible. Build campaigns. Use social media, email, and print to reach your community with targeted messaging. Tell stories. Highlight students whose lives were changed by scholarships. Humanize the impact of choice. Train staff as ambassadors. Every teacher, coach, and administrator should be able to explain ECCA simply and confidently. Marketing is about visibility. If your school isn’t proactive, another school will capture those families first. 3. Admissions: Removing Barriers ECCA will drive more inquiries. But if your admissions process is outdated, slow, or complicated, families will walk away. A scholarship only matters if it translates into enrollment. What schools need to do: Simplify applications. Families new to private education need a clear, welcoming process — not red tape. Respond quickly. Speed matters. A 24–48 hour turnaround on inquiries builds trust. Coordinate with fundraising. Admissions staff should know when scholarship dollars are available and how to connect families to them. Track data. Monitor where inquiries come from, how families move through the funnel, and what roadblocks prevent enrollment. Admissions is where the promise of ECCA becomes real. Without an efficient, family-friendly process, scholarship dollars risk going unused. 4. Integration: The Schools That Win The schools that benefit most from ECCA will not be the ones with the biggest donor list or the flashiest campaign. They will be the schools that integrate fundraising, marketing, and admissions into one strategy. Imagine this cycle: Fundraising brings in ECCA dollars from individual taxpayers. Marketing tells families those dollars are available and makes your school visible in the community. Admissions converts that interest into enrolled students, filling classrooms and strengthening the school’s future. Each part feeds the next. Schools that align all three will grow. Schools that silo them will struggle. 5. The Time to Prepare is Now ECCA officially launches in 2027, but the runway is short. Schools that start preparing today — building donor systems, updating marketing, and modernizing admissions — will be the ones that thrive from day one. Waiting until the law goes live means you’ll already be behind. Donors will be claimed. Families will have chosen. The first-movers will dominate. The Bottom Line ECCA is bigger than fundraising. It’s an opportunity to transform your entire advancement and enrollment model. Schools that treat it as a comprehensive strategy — fundraising + marketing + admissions — will not only unlock new dollars, they’ll grow enrollment, strengthen sustainability, and expand their impact for years to come. At RedefinED, we’ve spent years building the systems schools need to succeed in this exact environment. We’ve proven that when fundraising, marketing, and admissions work together, schools don’t just raise more — they grow more and do more. The schools that are ready will win. The time to prepare is now. Return Home