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The Education Freedom Tax Credit is a federal tax credit scholarship program designed to help families access educational opportunities that best fit their child’s needs.

Beginning January 1, 2027, eligible taxpayers may receive a 100% federal tax credit of up to $1,700 for contributions made to approved Scholarship Granting Organizations (SGOs) in participating states.

Those SGOs then distribute scholarship funds to eligible students and families for approved educational expenses.

In simple terms:

Taxpayer contributes ? SGO receives funds ? Scholarship is awarded ? Student benefits

This is not a voucher program.

This is not direct government funding sent to schools.

This is a tax credit program that allows private dollars to fund educational opportunity.

The Framework Is Here—But Final Guidance Is Still Coming

One of the biggest questions schools and Scholarship Granting Organizations are asking right now is:

“Do we need to wait for final federal guidance before preparing?”

The answer is no.

Yes, the federal rulemaking process is still underway, and there are still important details that will require final guidance from the U.S. Treasury and federal agencies, particularly around implementation, approved Scholarship Granting Organization structures, compliance requirements, and state participation details.

That part matters.

But the foundation of the program is already established.

The bones of the program are there.

We know:

• The Education Freedom Tax Credit is a federal tax credit scholarship program
• eligible taxpayers may receive up to $1,700 in a 100% federal tax credit
• Scholarship Granting Organizations (SGOs) will serve as the distribution mechanism
• states must opt in to participate
• approved educational expenses will support student access and opportunity
• implementation begins for tax years starting January 1, 2027

That is more than enough for schools and SGOs to begin preparing.

Waiting for every final detail before building your strategy is one of the biggest mistakes a school can make.

The schools that prepare now will lead.

The schools that wait will spend years catching up.

Preparation should start long before the first scholarship dollar arrives.

The process looks like this:

Step 1: Taxpayer Makes a Contribution

An eligible taxpayer contributes up to $1,700 to an approved Scholarship Granting Organization (SGO).

Step 2: Taxpayer Receives a Federal Tax Credit

The taxpayer receives a dollar-for-dollar federal tax credit for that contribution.

This means:

A 100% tax credit

Not a deduction.

Not a partial credit.

A full federal tax credit.

Step 3: SGO Awards Scholarships

The SGO uses those funds to provide scholarships for eligible students and families.

Step 4: Students Access Educational Support

Scholarship funds can then be used for approved educational expenses depending on state participation and program structure.

The Education Freedom Tax Credit is designed to support student access and educational opportunity.

Depending on implementation and eligibility, scholarship funds may support:

• private school tuition
• tutoring
• after-school programs
• academic intervention
• special education services
• transportation assistance
• enrichment opportunities
• summer learning support
• career readiness programs
• other qualified educational expenses

This means both private school families and public school students may benefit.

No.

This is one of the most important things schools need to understand.

States Must Opt In

The federal program does not automatically activate in every state.

Each state must choose to participate and submit approved Scholarship Granting Organizations annually to the U.S. Treasury.

That means preparation cannot wait.

Schools should be preparing before full implementation begins.

The schools that build systems early will benefit first.

A Scholarship Granting Organization (SGO) is an approved nonprofit that receives tax credit contributions and distributes scholarships to students.

They manage:

• compliance
• donor reporting
• scholarship applications
• legal oversight
• fund distribution
• federal and state regulatory requirements

SGOs are essential.

Without them, the program does not work.

But schools need to understand:

An SGO manages the program.

It does not build your school’s strategy.

That is where many schools struggle.

And that is where RedefinED helps.

For private schools, the Education Freedom Tax Credit creates a major opportunity to:

Increase Tuition Revenue

Improve Enrollment Stability

Expand Financial Aid Access

Strengthen Long-Term Sustainability

Reduce Dependence on Traditional Fundraising

The schools that succeed will not simply be the schools that ask for more donations.

They will be the schools that build better systems.

This program also creates major opportunities for public school students and families.

It can support:

• tutoring
• after-school care
• intervention services
• student enrichment
• family access to academic support

Public schools that understand how to educate families and build advancement systems around these opportunities will create stronger outcomes for students.

Historically, public schools have not needed advancement strategy.

That is changing.

Because most schools think tax credit programs are just fundraising.

They are not.

Success requires:

• parent education
• donor engagement
• community partnerships
• CPA and tax preparer relationships
• tuition strategy
• financial aid alignment
• leadership buy-in
• scholarship allocation planning
• long-term advancement systems

Without that structure, schools leave significant money on the table.

1. Understand the Program

Know how EFTC works and how it will impact your school.

2. Build Parent Education Systems

Families must understand how participation works.

3. Strengthen Community Relationships

Business owners, alumni, and CPAs matter.

4. Fix Tuition Strategy

Tax credit success and tuition strategy must work together.

5. Align Leadership

Superintendents, principals, pastors, boards, and finance leaders must be fully bought in.

Preparation starts before funding arrives.

At RedefinED, we do not simply help schools “do tax credits.”

We build the full system.

We work alongside vetted Scholarship Granting Organizations to help schools:

Raise More

Grow More

Do More

Without Hiring More

Our proven FUNDamentals™ process includes:

F — Familiarize and Educate Parents

Parent education that drives participation

U — Unify the Community

Business outreach and donor strategy

N — Navigate and Optimize Tuition

Aligning tuition with the true cost to educate

D — Direct and Allocate Funding Strategically

Making every scholarship dollar create measurable growth

This is how schools move from fundraising stress to financial confidence.

The schools that prepare now will lead.

The schools that wait will chase.

This is not about being early.

It is about being ready.

Many private schools assume they can simply respond once the federal program launches.

That is usually a costly mistake.

Schools that wait often face:

• missed scholarship opportunities
• weak parent participation
• poor donor engagement
• tuition instability
• unprepared financial aid systems
• enrollment uncertainty
• compliance confusion
• leadership frustration

The schools that thrive are the schools that prepare before the funding arrives.

Preparation starts now.

It Is About Building the Right System

Many schools hear “tax credit scholarship program” and immediately think:

“We need to ask more people for money.”

That is not the strategy.

That is reactive fundraising.

The Education Freedom Tax Credit requires something much bigger:

A complete advancement system designed to support long-term growth.

That includes:

• parent education
• donor engagement
• business community relationships
• CPA and tax preparer partnerships
• tuition strategy
• financial aid alignment
• scholarship allocation planning
• leadership buy-in
• compliance preparation
• enrollment growth strategy

This is not just about raising money.

This is about building a stronger school.

1. Understand How EFTC Will Impact Your School

The federal program will change how families, donors, and schools think about educational funding.

Ask:

• How will this affect our enrollment strategy?
• Are we positioned to benefit from new scholarship opportunities?
• Do our families understand what is coming?
• Are we prepared to educate our community?
• Is our leadership team aligned?

Schools that understand the opportunity early will move faster.

2. Build Parent Education Before the Program Launches

Parents are often the most overlooked part of school advancement.

If families do not understand the Education Freedom Tax Credit, they cannot help drive participation.

Schools need:

• mandatory parent education
• clear communication systems
• simple explanation of how EFTC works
• participation strategies
• follow-up processes

Confused families do not create momentum.

Educated families do.

3. Strengthen Business and Community Relationships

The Education Freedom Tax Credit creates new opportunities for donor participation.

Private schools need strong relationships with:

• business owners
• alumni
• parish communities
• local professionals
• vendors
• community leaders
• CPAs and tax preparers

The schools with strong community networks will benefit most.

Not the schools with the best fundraising letters.

4. Reevaluate Tuition Strategy

This is where many schools miss the biggest opportunity.

Too many private schools still set tuition below the true cost to educate and try to make up the difference later.

That creates instability.

The Education Freedom Tax Credit should be part of a larger tuition strategy that aligns:

True Cost to Educate

Scholarship Access

Family Affordability

Sustainable Revenue Growth

This is where real transformation happens.

5. Prepare Leadership for Change

Federal scholarship success requires leadership alignment.

From:

• pastors
• principals
• presidents
• boards
• business managers
• development leaders

Without leadership buy-in, implementation breaks down quickly.

The strongest schools treat EFTC as a strategic growth initiative, not just another fundraising project.

At RedefinED School Advancement, we do not help schools “try” the Education Freedom Tax Credit.

We build the full system that makes it work.

Our proven FUNDamentals™ process helps private schools:

Raise More

Grow More

Do More

Without Hiring More

We provide schools with a full team of experts for a fraction of the cost of one in-house hire.

Our 4-step process includes:

F — Familiarize and Educate Parents

Helping families understand and participate

U — Unify the Community

Building donor and business engagement systems

N — Navigate and Optimize Tuition

Aligning tuition strategy for real sustainability

D — Direct and Allocate Funding Strategically

Making sure scholarship dollars create measurable growth

This is how schools move from fundraising stress to financial confidence.

The private schools that prepare now will lead.

The schools that wait will chase.

This is not about being early.

It is about being ready.

Most districts are built around operations, compliance, and instruction.

Not advancement.

There usually is not:

• a donor strategy
• parent engagement around funding opportunities
• business outreach systems
• scholarship education for families
• a community advancement plan
• a financial growth strategy tied to external scholarship programs

And that makes sense.

Historically, public schools were not expected to think this way.

The Education Freedom Tax Credit changes that.

Districts that prepare early will unlock opportunities.

Districts that wait will miss them.

It Is Family Access + Student Support + Strategic Revenue

When public school leaders hear “tax credit scholarship,” many assume:

“That is for private schools.”

It is not.

This federal program creates opportunities for public school families too.

This is about helping students access:

• tutoring when they are falling behind
• after-school care for working families
• intervention support for struggling learners
• enrichment opportunities that districts cannot always fund internally
• academic resources that strengthen outcomes for the whole child

This is not about replacing public education.

It is about strengthening it.

1. Understand How EFTC Applies to Public School Families

Many district leaders do not realize how much this program can support their students.

The first step is understanding:

• who may qualify
• what services can be funded
• how families access those resources
• how schools can support participation
• how districts can partner strategically

Awareness creates opportunity.

Silence creates missed funding.

2. Build Parent Education Systems

Parents cannot use a program they do not understand.

Districts need a clear strategy for:

• educating families
• simplifying communication
• increasing participation
• removing confusion
• helping families navigate available resources

This cannot be a flyer buried in a backpack.

It must be intentional.

3. Strengthen Community Partnerships

The strongest public school systems already know:

Community partnerships change outcomes.

The Education Freedom Tax Credit creates stronger opportunities to work with:

• after-school providers
• Boys & Girls Clubs
• tutoring organizations
• local nonprofits
• business leaders
• community foundations
• early learning organizations
• educational service providers

Districts that coordinate these relationships well will create stronger results for students.

4. Develop an Advancement Strategy

Most public schools do not have one.

That is normal.

But now it is necessary.

Advancement means building systems for:

• funding growth
• family support
• strategic partnerships
• educational access
• long-term sustainability

This is not a development office.

This is leadership strategy.

And districts that ignore it will fall behind.

5. Align Leadership Around Opportunity

This requires buy-in from:

• superintendents
• assistant superintendents
• school boards
• finance leaders
• student services teams
• family engagement staff
• community partners

Without leadership alignment, implementation stalls.

The districts that succeed will treat this as a strategic initiative, not a side project.

At RedefinED School Advancement, we help schools build systems that create real growth.

Public schools are often incredible at education.

But advancement strategy is a different discipline.

That is where we help.

Our proven FUNDamentals™ process helps schools:

Raise More

Grow More

Do More

Without Hiring More

We provide a full team of experts for a fraction of the cost of one in-house hire.

Our process includes:

F — Familiarize and Educate Families

Helping parents understand and access opportunity

U — Unify the Community

Building partnerships that strengthen student outcomes

N — Navigate and Optimize Revenue

Creating stronger financial strategy and sustainability

D — Direct and Allocate Funding Strategically

Ensuring dollars are used where they matter most

This is how districts move from reactive problem-solving to proactive growth.

The public schools that prepare now will lead.

The districts that wait will chase.

This is not about private school competition.

It is about helping every child access what they need to succeed.

And public schools deserve to be part of that conversation.

The Education Freedom Tax Credit is a new federal tax credit scholarship program designed to help families access educational opportunities that best fit their child’s needs.

Unlike vouchers, this is not government funding sent directly to schools.

Instead:

Taxpayers Donate ? SGOs Receive Funds ? Scholarships Are Awarded ? Students Benefit

Taxpayers contribute to approved Scholarship Granting Organizations (SGOs), receive a dollar-for-dollar federal tax credit, and those funds are then used to provide scholarships and educational support for eligible students.

This can support:

• Private school tuition
• Tutoring
• Academic intervention
• Special education services
• After-school enrichment
• Transportation assistance
• Other qualified educational expenses

This means both private school students and public school families may benefit depending on state implementation.

For private schools, EFTC creates a major opportunity to:

Increase Tuition Revenue

Improve Enrollment Stability

Expand Financial Aid Access

Strengthen Long-Term Sustainability

Reduce Dependence on Traditional Fundraising

Schools that position themselves early will be able to capture significantly more scholarship funding than schools that wait.

The schools that win will not be the schools that ask for donations better.

They will be the schools that build better systems.

The federal program does not automatically activate in every state.

Each state must choose to participate and submit approved Scholarship Granting Organizations annually to the U.S. Treasury.

That means school leaders need to be paying attention now.

Waiting until implementation begins is already too late.

Preparation happens before the funding arrives.

Most schools approach tax credit programs like this:

Make a few donor calls

Send a few reminder emails

Hope for better results

That is not a strategy.

That is survival mode.

The schools that generate transformational results take a much more holistic approach.

They focus on:

• Parent education
• Community engagement
• Donor development
• CPA and tax preparer relationships
• Tuition strategy
• Financial aid alignment
• Scholarship allocation systems
• Long-term advancement planning

This is the difference between raising money…

…and building financial stability.

At RedefinED School Advancement, we do not simply help schools “do EITC.”

We build the full system.

Our proven FUNDamentals™ process helps schools:

Raise More

Grow More

Do More

Without Hiring More

We provide schools with a full team of experts for a fraction of the cost of one in-house hire.

Our 4-step process includes:

F — Familiarize and Educate Parents

Parent engagement and education that drives participation

U — Unify the Community

Business outreach, donor strategy, and CPA partnerships

N — Navigate and Optimize Tuition

Aligning tuition strategy with the true cost to educate

D — Direct and Allocate Funding Strategically

Ensuring scholarship dollars create measurable growth

This is how schools move from fundraising stress to financial confidence.

It is about stronger schools.

It is about enrollment growth.

It is about mission sustainability.

It is about making sure schools are still here 20 years from now.

Tax credit programs should not feel like another burden.

They should be the engine that drives long-term advancement.

Most schools are not.

And that is exactly why preparation matters now.

The schools that build systems first will lead.

The schools that wait will chase.

The true cost to educate is exactly what it sounds like—the actual cost it takes for your school to educate one student.

This includes:

• teacher salaries and benefits
• administration and operations
• facilities and maintenance
• technology and classroom resources
• transportation and student services
• extracurriculars and student support
• long-term sustainability and growth needs

Most schools know this number.

Very few actually charge it.

Instead, tuition is often set based on what feels “marketable” or what leadership believes families can handle without pushback.

The result?

Schools knowingly price tuition below sustainability and hope fundraising fills the gap.

That is not a financial model.

That is survival mode.

When tuition is artificially low, schools create three major problems:

1. Constant Financial Pressure

Schools are forced to chase dollars every year just to stay afloat.

Fundraising becomes emergency management instead of strategic advancement.

2. Families Do Not Understand the Real Value

When tuition is disconnected from the true cost to educate, families often do not understand what education actually costs or how much subsidy is already happening behind the scenes.

3. Scholarship Programs Are Underutilized

Tax credit scholarships and financial aid should be helping families access the true cost of education—not masking an already broken tuition model.

Without the right tuition structure, schools leave significant funding opportunities on the table.

Strong schools do not rely on low tuition.

They rely on smart tuition strategy.

That means setting tuition based on the true cost to educate, then strategically applying:

• financial aid
• tax credit scholarships
• tuition assistance
• family support structures

This creates a model where:

Families stay affordable

Schools become financially stronger

Leadership stops operating in crisis mode

Enrollment becomes more stable

Growth becomes possible

This is not about charging families more.

It is about creating clarity, sustainability, and a system that actually works.

Because tuition conversations are uncomfortable.

Leadership worries about:

• parent pushback
• enrollment decline
• board resistance
• difficult messaging
• fear of changing “how we’ve always done it”

But avoiding the conversation does not solve the problem.

It just delays it.

And often makes the financial pressure worse.

The schools that thrive are the schools willing to lead through that discomfort.

At RedefinED School Advancement, we help schools stop treating tuition like a guessing game.

We help schools build a strategic model that aligns:

True Cost to Educate

Family Affordability

Tax Credit Scholarships

Long-Term Revenue Growth

This is Phase N of our proven FUNDamentals™ process:

Navigate and Optimize Tuition

This is often where the biggest transformation happens.

Because when tuition strategy gets fixed, everything else gets stronger:

• enrollment
• retention
• financial aid access
• tax credit participation
• scholarship allocation
• donor confidence
• school sustainability

This is why we say:

Tax credit strategy without tuition strategy is incomplete.

The Goal Is Not Higher Tuition

The goal is stronger schools.

The goal is making sure your school is still thriving 10, 20, and 30 years from now.

The goal is ensuring families can access your mission without the school operating under constant financial stress.

The goal is sustainability.

And sustainability starts with truth.

The true cost to educate.

Most schools do not need another fundraiser.

They need a better system.

And that starts with tuition strategy.

A Scholarship Granting Organization (SGO) is an approved nonprofit organization that receives tax credit contributions from donors and distributes scholarship funds to eligible students and families under the Education Freedom Tax Credit program.

In simple terms:

Taxpayers contribute ? SGO receives funds ? Scholarships are awarded ? Students benefit

Under the federal program, eligible taxpayers may receive a 100% federal tax credit of up to $1,700 for contributions made to approved SGOs in participating states.

SGOs manage:

• donor compliance
• federal reporting requirements
• scholarship eligibility requirements
• application processing
• fund distribution
• legal and regulatory oversight

They are the compliance and administrative engine behind the Education Freedom Tax Credit.

They are absolutely necessary.

Without SGOs, the program does not function.

Schools cannot access the full opportunity of the Education Freedom Tax Credit without one.

SGOs are the bridge between taxpayers and student scholarships.

They help ensure:

• contributions are legally compliant
• scholarships are properly awarded
• funds are distributed correctly
• federal and state regulations are followed
• taxpayers receive the proper federal tax credit benefits

Simply put:

Schools need SGOs because SGOs make the program legally work.

But that is only part of the equation.

Here Is the Problem

Most SGOs are not built to grow your school.

They are built to manage scholarship programs.

That is a very different job.

An SGO can process scholarships.

But they typically are not designed to:

• educate your parents
• create donor outreach systems
• restructure your tuition model
• build CPA and tax preparer relationships
• drive family participation
• improve enrollment strategy
• maximize school-level revenue
• create long-term advancement plans

That is not a flaw.

That is simply not their role.

And this is where many schools get frustrated.

They think:

“We have an SGO… why are we still struggling?”

Because compliance is not the same as strategy.

At RedefinED School Advancement, we work alongside a select group of vetted SGOs to create a system that works better for everyone:

Schools

SGOs

Students

Families

We do not replace SGOs.

We make them work better.

We focus on the school-side advancement strategy that most SGOs do not have the bandwidth to provide.

That includes:

• parent education
• donor development
• community engagement
• tuition strategy
• scholarship optimization
• enrollment growth
• strategic allocation of funds
• long-term financial sustainability

We help schools stop treating the Education Freedom Tax Credit like a new fundraising project and start building a real advancement system around it.

Not all SGOs operate the same way.

We partner with a select few organizations we have carefully vetted because alignment matters.

We look for partners who value:

• transparency
• real-time communication
• school-first strategy
• operational efficiency
• compliance excellence
• shared mission around student access

When schools, SGOs, and RedefinED are aligned, results become transformational.

When they are not, schools often experience delays, confusion, and unnecessary friction.

We protect schools from that.

Traditional Model

School ? SGO ? Hope for Results

This often leads to:

• limited parent engagement
• underperforming scholarship participation
• donor fatigue
• weak tuition strategy
• inconsistent financial aid systems

School + RedefinED + Trusted SGO = Full Advancement System

This creates:

• stronger enrollment
• better family participation
• more scholarship dollars
• healthier tuition revenue
• stronger donor relationships
• better outcomes for students
• less internal burden for school leadership

This is not just better fundraising.

This is better infrastructure.

The truth is:

This model helps SGOs too.

Because when schools are educated, organized, and strategically aligned:

• taxpayer participation improves
• scholarship volume grows
• compliance becomes smoother
• communication improves
• families have a better experience
• outcomes are stronger for everyone

This is why the best SGO partnerships are collaborative, not competitive.

We believe deeply in that.

RedefinED helps schools:

Raise More

Grow More

Do More

Without Hiring More

Through our proven 4-step process:

F — Familiarize and Educate Parents

Drive family understanding and participation

U — Unify the Community

Strengthen donor and business relationships

N — Navigate and Optimize Tuition

Fix the system behind financial instability

D — Direct and Allocate Funding Strategically

Ensure every scholarship dollar creates measurable growth

This is how schools move from fundraising stress to financial confidence.

But the right system matters even more.

Schools do not need just an SGO.

They need a strategy.

That is the difference.

And that is where RedefinED changes everything.

Most schools approach tax credit programs like this:

• ask a few families to participate
• make a few donor calls
• send an email reminder
• hope for better results next year

That is not a strategy.

That is survival mode.

When schools treat tax credit programs like a seasonal fundraising project instead of a year-round advancement system, results stay small.

And frustration grows.

1. They Treat Tax Credits Like Fundraising Instead of Financial Strategy

This is the biggest mistake.

Tax credit programs should not sit only with development.

They should be part of:

• enrollment strategy
• tuition planning
• financial aid structure
• family retention
• long-term revenue growth

Schools that separate tax credits from tuition strategy limit their own success.

Tax credits are not just fundraising.

They are financial infrastructure.

2. Parents Are Not Properly Educated

Most parents do not fully understand how tax credit programs work.

They are confused by:

• eligibility
• deadlines
• paperwork
• benefits
• why participation matters

When parents are confused, participation drops.

Schools often assume:

“We sent the information.”

That is not education.

That is communication.

There is a difference.

Schools need intentional parent education, not just information.

3. They Depend Too Much on a Small Donor Circle

Many schools rely on the same few donors every year.

That creates risk.

Strong tax credit programs require broader community engagement through:

• business owners
• alumni
• parish communities
• vendors
• local leaders
• CPAs and tax preparers

The strongest schools build systems, not dependency.

4. Tuition Strategy Is Broken

That model creates constant financial pressure.

Tax credit programs work best when paired with a tuition strategy that aligns:

True Cost to Educate

Financial Aid

Scholarship Access

Sustainable Revenue Growth

Without this alignment, schools stay stuck in deficit thinking.

5. Leadership Is Not Fully Bought In

If leadership treats tax credits like “someone else’s job,” the program will fail.

Success requires alignment from:

• pastors
• principals
• presidents
• boards
• business managers
• development teams

Without top-down commitment, execution breaks down quickly.

The best schools make tax credit strategy a leadership priority.

Stop Chasing Dollars. Start Building Systems.

Schools do not need more fundraising chaos.

They need a repeatable advancement process.

That means:

• Educating Parents
• Engaging the Community
• Optimizing Tuition
• Strategically Allocating Scholarship Dollars

This is how schools create real growth.

Not one-time wins.

Long-term sustainability.

At RedefinED School Advancement, we created a proven system because we saw too many schools struggling with the same problem.

Schools were working hard.

But without the right structure, hard work was not producing transformational results.

That is why we built FUNDamentals™.

A 4-step system that helps schools:

Raise More

Grow More

Do More

Without Hiring More

F — Familiarize and Educate Parents

Parent education drives participation.

We help schools create mandatory education systems that increase understanding and action.

U — Unify the Community

Tax credit growth requires more than parent participation.

We help schools expand donor relationships through businesses, alumni, parishes, and community leaders.

N — Navigate and Optimize Tuition

This is where transformation happens.

We align tuition strategy with the true cost to educate while maintaining family affordability.

D — Direct and Allocate Funding Strategically

Every scholarship dollar should create measurable growth.

We help schools ensure funding supports enrollment, revenue, and long-term stability.

---

The Schools That Win Do Not Work Harder

They Work Smarter

The schools generating transformational tax credit results are not necessarily better schools.

They simply have better systems.

They understand that advancement is not an event.

It is a process.

And once the system is built, everything gets stronger:

• enrollment
• retention
• tuition revenue
• family engagement
• financial aid access
• donor relationships
• long-term sustainability

Most schools are.

The good news?

It is fixable.

And the fix starts with the right system.