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.
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