Scholarship Granting Organizations: A Tool for Mission, Not Just Money
The passage of the Education Choice for Children Act (ECCA) has opened a historic door for Catholic education in the United States. For the first time, a federal tax credit will be available to donors who contribute to Scholarship Granting Organizations (SGOs), which then provide tuition assistance to families seeking a quality K–12 education for their children.
For Catholic diocesan leaders and principals, this is not simply about funding—it’s about using a powerful new tool to advance the mission of Catholic education, grow enrollment with purpose, and secure financial sustainability for generations.
Understanding the New Federal Tax Credit Scholarship
Starting January 1, 2027, the ECCA allows individuals to receive a dollar-for-dollar federal tax credit, up to $1,700 per year, for contributions to certified SGOs in participating states. SGOs then award scholarships that can be applied toward tuition and fees at qualified schools, including Catholic schools.
Key points include:
- Donor Incentive: This is a direct credit against federal taxes owed, making SGO giving more attractive than standard charitable deductions.
- Student Eligibility: Families earning up to 300% of the Area Median Income—often $90,000–$120,000 for a family of four—qualify. This opens doors to many middle-income families who may not receive traditional aid.
- School Eligibility: Any qualified private school—including Catholic schools—may accept scholarships if they meet the program’s requirements, such as being accredited, complying with state health and safety standards, and agreeing to administer nationally recognized assessments.
- SGO Requirements: At least 90% of funds must go directly to scholarships; SGOs must serve at least 10 students at different schools, maintain separate accounts, comply with audits, and avoid self-dealing or earmarking scholarships for specific students.
- State Opt-In: States must choose to participate and submit a list of approved SGOs to the U.S. Treasury.
For Catholic schools, this means families can access federal-backed tuition support without placing new fundraising burdens on the diocese—if a mission-aligned, compliant SGO is in place.
Best Practices for SGOs Serving Catholic Schools
To maximize impact, your SGO partner should be:
- Mission-Aligned – Protect Catholic identity while meeting legal requirements.
- Compliance-Strong – Manage all documentation and verification flawlessly.
- Family-Centered – Make applications simple and welcoming.
- Transparent – Clearly communicate how funds are used.
- Strategically Focused – Attract families committed to Catholic education, not just fill empty seats.
Why Reficio Is Built for Catholic Schools
Reficio is the only Catholic national SGO created for the ECCA era, combining policy expertise with a commitment to preserving the faith-based mission of Catholic education.
What Does Partnering with Reficio Mean?
- Catholic identity stays intact. We know the importance of formation and mission integrity.
- Families gain life-changing access. Scholarships reach students who truly desire a Catholic education.
- Leaders get full support. We handle compliance and administration so schools can focus on evangelization, academics, and community.
We also equip dioceses and principals with templates, resources, and training to explain ECCA clearly to families and donors.
The Time to Act Is Now
ECCA is more than a funding mechanism; it’s a mission tool that can expand Catholic education’s reach, welcome more families into faith-filled environments, and stabilize school finances. But the preparation time is short. States will soon decide whether to participate, and SGOs will be certified.
To seize this moment, Catholic schools must be ready. That means advocating to ensure Catholic families are included, clearly demonstrating the eternal and life-changing value of scholarships to stand out among donor competition, and partnering with experts to avoid compliance errors that could jeopardize funding.
If you are a diocesan leader or principal, now is the time to understand how this works and secure a partnership with an SGO like Reficio—so you can lead in this space rather than play catch-up.
Are You Ready to Take the Next Step?
Contact me directly at daniellelesure@reficio.co to schedule a conversation about how we can help your schools grow enrollment, serve more families, and thrive in the ECCA era.
Catholic education has always been about more than academics; it’s about forming saints and scholars who will transform the world. Let’s use every tool available, including SGOs, to make that mission a reality for more children than ever before.
