Discuss with Arete Advisory GroupSCHOLARSHIP READINESS • JANUARY 2027
The federal scholarship tax credit could help more families afford Christian education. Arete helps school leaders understand the opportunity, ask the right questions, and prepare responsibly.
Reviewed October 3, 2026 • Plain-language guidance for Christian school leaders
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Congress enacted the Federal Scholarship Tax Credit in 2025 under Internal Revenue Code section 25F. It begins January 1, 2027. Qualifying cash donations to eligible Scholarship Granting Organizations (SGOs) can earn donors a nonrefundable federal tax credit. Those organizations use the contributions to fund eligible students’ education expenses.
This is a donation-funded scholarship pathway, not an automatic government payment to every school or family. The donor credit limit is not a promised scholarship amount.
The individual credit limit is $1,700 annually. October 1 proposed regulations provide a combined limit of $3,400 for married taxpayers filing jointly.
State participation and eligible SGO listing are required. Check the current IRS list and the relevant organization’s status before making commitments.
Scholarships can support qualifying K–12 expenses, including private-school tuition. Awards depend on eligibility, available funds, and the organization’s process.
The law is enacted; it is not waiting for an initial vote. Treasury and the IRS issued proposed implementation rules and companion temporary procedural rules on October 1, 2026. Proposed rules should be identified as proposed when communicating with families and donors.
The statutory household-income ceiling is 300% of area median gross income, with public elementary or secondary school enrollment eligibility also required. Have the SGO confirm the applicable eligibility and documentation requirements.
Additional scholarship support may make attendance possible for more families and help existing families remain enrolled. The opportunity is strongest when a school connects affordability with available seats, realistic net tuition, clear family communication, and a dependable scholarship partner. Do not build guaranteed scholarship revenue into the budget.
Our advisory team helps you move from an announcement to a school-specific plan. Start with a no-cost conversation and a free readiness assessment.
Complete a short questionnaire about your school’s location, enrollment, tuition, existing aid, and scholarship relationships. Arete reviews your state’s participation and potential SGO partners, then provides a brief remote consultation and a concise next-step summary. No purchase is required. This is an initial planning assessment, not an eligibility determination or a full implementation plan.
| Service | Remote | On-site | Included support |
|---|---|---|---|
| Readiness assessment | Free | Remote assessment | Short questionnaire, state and potential SGO review, brief consultation, and next-step summary. |
| Scholarship planning session | $100 | $200 + travel | One 60-minute leadership session, review of your assessment, and a written priority checklist. |
| Scholarship readiness plan | $250 | $500 + travel | One 90-minute planning session, review of current tuition and aid practices, a school-specific action plan, family and donor communication drafts, a document checklist, and one 30-minute follow-up within 30 days. |
The readiness plan is a standalone engagement; you do not need to purchase the planning session first. Fees are per school, not per participant. On-site pricing is twice the equivalent remote engagement fee, plus travel expenses. Travel is determined by location and agreed upon in advance. Scope, deliverables, timing, and total cost are confirmed in writing before paid work begins.
Annual Arete advisory membership remains $2 per enrolled student, per year. Basic scholarship guidance is included in the initial results-review consultation and scheduled quarterly check-ins. The free readiness assessment remains available to everyone. Dedicated paid sessions, the written readiness plan, substantial implementation, SGO formation, legal or tax work, and software integration are separate from membership. Additional implementation support is quoted only when needed.
CROWN and Jireh provide a planning pathway for connecting admissions, financial aid, tuition records, and school reporting. We can help your school define how an outside scholarship award should be recorded alongside its own aid decisions and family balances.
Any SGO connection, eligibility workflow, or program-specific reporting must be confirmed and validated before use. Arete and CROWN are not presented as approved SGOs, and software does not determine federal eligibility or guarantee scholarship funding.
School planning guidance. Individual tax treatment and legal requirements should be confirmed with qualified advisers and the applicable SGO.
MOVE FROM INSIGHT TO ACTION
Start with a no-cost conversation about your state, your families, and the next practical steps.