Preparing for ECCA Tax Credits: More Than Fundraising

When it comes to expanding school choice, two major tools often come up in conversation: education vouchers and tax credit scholarships. While they both aim to give families more options in choosing the right school for their child, they work very differently. Understanding the distinction is key—especially with the upcoming Educational Choice for Children Act (ECCA), which will operate as a tax credit program, not a voucher system. What Are Education Vouchers? Education vouchers are direct government-funded certificates that parents can use to pay tuition at private schools instead of public schools. Essentially, a portion of the taxpayer money that would have funded a child’s education in the public system follows that student to the private school of their choice. How vouchers work in practice: Funded directly by the state. Parents receive a set dollar amount toward tuition. Public school dollars are reallocated to private education. While this approach gives families flexibility, it often sparks debates around whether public school funding is being diverted. What Are Tax Credit Scholarships? Tax credit scholarships work differently. Instead of pulling dollars out of the public system, they incentivize private donations by offering tax credits. How tax credits work in practice: Individuals and businesses contribute to scholarship organizations. In return, they receive a percentage of their contribution back as a tax credit. The scholarship organizations then use those funds to provide tuition assistance for families. This model shifts the focus from government spending to private giving, empowering donors to directly support educational opportunities while keeping public school funding intact. Where Does the ECCA Program Fit? The Educational Choice for Children Act (ECCA) is a federal tax credit scholarship program set to launch in 2027. Here’s why that’s important: It’s not a voucher. No federal or state education dollars are being redirected. It’s fueled by private contributions. Donors will receive a tax credit for contributing to scholarship-granting organizations. It expands access. Families who may not have been able to afford private education will gain new opportunities. In short, the ECCA combines the best of both worlds—encouraging private philanthropy while opening doors for students to attend schools that best fit their needs. Why the Distinction Matters Confusion between vouchers and tax credits is common, but the distinction matters because: Policy debates differ. Critics often focus on voucher programs’ impact on public school budgets, while tax credits avoid this tension. Donor involvement increases. Tax credits bring private dollars into education instead of redistributing existing funds. Public perception shifts. Framing ECCA as a tax credit scholarship program helps clarify that it’s about creating opportunities through giving, not cutting public school support. Final Thought The upcoming ECCA program represents one of the most significant expansions of school choice in U.S. history. By leveraging tax credits instead of vouchers, it ensures that families gain access to new educational opportunities while strengthening a culture of giving. At RedefinED, we’re here to help schools prepare for this landmark program—so they can raise more, grow more, and do more for their students. Return Home

For the past year, our team has been quietly building something we’ve wished existed for a long time. Not another product. Not another vendor relationship. Not another thing for school leaders to manage. Something bigger. At RedefinED School Advancement, we’ve spent the last five years working alongside schools in nearly every area of growth. We’ve helped secure more than $100 million in tax credit scholarship funding, supported enrollment initiatives, and listened to countless administrators share the same challenge: “We know what needs to be done. We just don’t have the people, time, or resources to do it all.” They’re right. Schools are being asked to be experts in advancement, marketing, enrollment, admissions, communications, donor engagement, family relations, and now artificial intelligence—all while staying focused on what matters most: educating children. The traditional answer has been to hire more people. But what if there was a better way? What if schools could access an entire team of specialists across multiple departments for less than the cost of a single full-time hire? What if every aspect of growth worked together instead of operating in silos? What if increasing scholarship funding helped fuel enrollment growth, and technology ensured that no interested family ever slipped through the cracks? For more than a year, we’ve been testing, refining, and building a new approach to helping schools grow sustainably. The result is something we believe will fundamentally change how schools think about advancement and long-term success. And on July 6, we’ll finally be ready to share it. If you’ve been following our journey, you know that we’ve never been interested in doing things the way they’ve always been done. We’ve always believed that schools deserve innovative solutions that are both mission-driven and financially sustainable. This next chapter is no different. The future of school growth is coming. Stay tuned.

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.