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.
Connect with us
