What is an SGO?

In 2021, the state of Ohio passed legislation that allows for the establishment of SGOs.  SGO stands for Scholarship Granting Organization. Scholarship Granting Organizations provide an opportunity for donors to use their tax dollars to provide tuition assistance to eligible families and their students.

Scholarship Granting Organizations are separate, tax exempt, 501(c)3 organizations. SGOs are established to collect donations on behalf of participating schools who want to provide scholarships to their eligible students. Each SGO and their participating schools determine the scholarship application and subsequent award process according to Ohio laws and guidelines.

A Scholarship Granting Organization must register and be certified by the state of Ohio. In order to receive certification by the state of Ohio, an SGO must:

• Be a religious or nonreligious nonprofit organization exempt from federal taxation under section 501(a) of the Internal Revenue Code as an organization described in section 501(c)(3) of the Internal Revenue Code.
• Primarily award academic scholarships for students to attend primary and secondary schools (K-12).
• Prioritize awarding scholarships to low-income primary and secondary school students.
• Comply with all registration and reporting requirements with the Ohio Attorney General applicable under the Ohio Charitable Trust Act, Ohio Revised Code (ORC) ORC 109.23-109.32, and/or the Ohio Charitable Organizations Act, ORC Chapter 1716

Participation in an SGO – A win for schools!

The ability to participate in an SGO for schools is another way for private schools to assist their families and students. Since donations through an SGO are earmarked for scholarships, donations outside of the SGO can be used for other projects and school-related needs.

Since donations to the SGO provide a tax credit to the donor, it does not interfere with other development campaigns. Schools may register with more than one SGO.

Donations to the SGO – A win for donors!

A tax credit is available under section 5747.73 of the Ohio Revised Code for qualified donations to “scholarship granting organizations” certified by the Attorney General.

Donations of up to $750 per individual qualify for a tax CREDIT from an Ohio individual taxpayers aggregate tax liability. In other words, Ohioans who donate to a qualifying SGO are designating their tax dollars for tuition!

The maximum donation that qualifies for a tax credit is $750 for an individual. Married couples filing jointly may donate $750 each, for a total of $1500 tax credit on their annual return.

The tax credit may not exceed the individual’s (or married couple filing jointly) Ohio tax liability. Donations that exceed the annual Ohio tax liability may claim the difference between the donation and the tax liability as charitable giving on their federal tax return.

Scholarships through an SGO – a win for families and students!

Funds donated through an SGO are designated for scholarships in order to assist low-income students and their families, allowing more Ohio families to have access to school choice.

Every Child Every Family Scholarship Granting Organization – A WIN for everyone!

School Choice Ohio is pleased to announce the launch of Every Child Every Family Scholarship Granting Organization. ECEF is a separate 501(c)3 organization that was established to continue the mission of School Choice Ohio by providing Ohio families with excellent educational opportunities for every student. ECEF is a registered SGO with the State of Ohio.

Every Child Every Family is accepting applications from eligible schools to participate in our Scholarship Granting Organization. Just some of the benefits of participating are:

• Administrative fees are waived through 2023 for schools who register by December 31, 2022.
• Participating schools control the funds designated to them by their donors and can make scholarship decisions for the funds collected (subject to Ohio laws and regulations).
• School Choice Ohio and Every Child Every Family will partner with each participating school to communicate and market to their donor base.
• Donations that are not earmarked for a specific school will be distributed within the participating schools for their scholarship programs.

For more information about the Every Child Every Family Scholarship Granting Organization, register to be a participating school, or to make a donation visit www.EveryChildEveryFamily.org.

Please consult ORC 5747.73, ORC 109.23-109.32, ORC 1716, OAC 109:1-1, and OAC 109:1-8-01 for details concerning eligibility and requirements.