What Is a Scholarship Granting Organization?
A New Way to Support Christian Education Through Faithful Stewardship
As Legacy Deo prepares to launch a new Scholarship Granting Organization initiative, many families, donors, churches and ministry partners may be asking the same important question:
What exactly is a Scholarship Granting Organization?
A Scholarship Granting Organization, often called an SGO, is an organization that helps receive, steward and distribute qualified gifts for student scholarships. In the context of Christian education, an SGO helps connect generous supporters with schools to provide meaningful support to families who desire a Christ-centered education but need financial assistance to make it possible.
Legacy Deo’s new SGO initiative is connected to the upcoming Federal Scholarship Tax Credit program, which begins in 2027. This program will allow individual taxpayers to direct a portion of their federal tax dollars toward scholarships that support Christian schools.
For families, this means greater access to Christian education. For schools, it means stronger scholarship resources. For donors and ministry partners, it offers a new way to align faith, stewardship and education.
“This is an exciting moment for Christian education in Texas,” said Kassi Benaglio, SGO Coordinator at Legacy Deo. “The Scholarship Tax Credit program gives families, grandparents and supporters a meaningful way to direct tax dollars they already owe toward scholarships that help students grow in faith, learning and service. Our goal is to help schools steward this opportunity with clarity, integrity and care.”
How Does a Scholarship Granting Organization Work?
At its simplest, a Scholarship Granting Organization serves as a bridge between supporters, students and schools.
Through the Federal Scholarship Tax Credit program, qualified individuals will be able to contribute to an approved SGO, such as the Legacy Deo SGO. Those gifts are then used to provide scholarships for eligible students attending participating schools.
Rather than functioning as a traditional fundraising campaign, the Scholarship Tax Credit program provides a new way for families, grandparents and supporters to redirect tax dollars they already owe toward scholarships that support Christian education.
That distinction is important. This is not simply about asking people to give more. It is about helping people steward their resources in a way that supports students, strengthens schools and serves families.
Why Are SGOs Important for Christian Schools?
Each year, Christian schools provide meaningful financial assistance to families who desire a Christ-centered education. In many cases, the total need for tuition assistance exceeds the funds available.
That gap can create difficult decisions for families and schools. Families may wonder whether Christian education is financially possible. Schools may want to help more students but face limits in available scholarship resources.
An SGO helps address that challenge.
By strengthening scholarship funding, schools are better positioned to cover existing scholarship commitments and, in many cases, expand access to families who otherwise might not be able to attend. For Christian schools, this support can also contribute to long-term sustainability. Stronger scholarship resources help schools continue serving families while remaining faithful to their mission.
How Can Families Benefit from an SGO?
For families, the impact of an SGO is deeply personal.
Scholarship support can help make Christ-centered education more accessible for students who may not otherwise have the opportunity to attend a Christian school. It can also help current families continue in a school community they value.
Christian education is about more than academics. It’s about helping students grow in faith, learning and service to others. It is about teachers who pray with students, model Christ’s love and partner with families in the formation of young people.
An SGO helps open that opportunity to more families.
How Can Donors, Grandparents and Ministry Partners Participate?
The upcoming Federal Scholarship Tax Credit program creates a meaningful opportunity for donors, grandparents, church members and ministry partners to support Christian education in a new way.
Beginning in 2027, individual taxpayers will be able to direct a portion of their federal tax dollars toward scholarships through a qualified SGO. Qualified gifts may begin on Jan. 1, 2027, with tax credits applied to 2027 federal tax returns.
For supporters of Christian education, this creates a practical and mission-aligned way to help students and families. It allows individuals to support schools not only through charitable giving, but also through the faithful stewardship of tax dollars they already owe. As federal guidance continues to be finalized, Legacy Deo will provide ongoing communication, resources and support to help donors, schools and families understand the process.
Supporting Teachers and Staff Through Scholarship Resources
An SGO can also strengthen the broader school community by helping support teachers and staff.
Many Christian school educators receive tuition assistance for their children as part of their vocational calling to Christian education. By strengthening scholarship resources, schools are better positioned to support these educators and their families.
Teachers and staff serve as daily models of Christ for students. They help shape school culture, encourage families and carry forward the mission of Christian education in meaningful ways.
When scholarship resources grow stronger, the benefits can reach beyond students alone. They can help support the people who make Christian education possible every day.
Why Is Legacy Deo Launching an SGO?
Legacy Deo has more than 60 years of experience serving churches, schools, camps, and ministries. This work requires financial expertise, compliance infrastructure, careful communication and a relational approach grounded in faithful stewardship.
Legacy Deo has been preparing intentionally for this opportunity since early 2026, collaborating with school leaders and learning from the experience of longstanding scholarship programs across the country.
This work is being developed in close partnership with Dr. Bill Hinz, Director of School Ministry for the Texas District, and the Texas District of the LCMS. Together, Legacy Deo and district leadership are working to ensure schools are equipped with clear guidance, strong governance, and faithful stewardship as they prepare for the Federal Scholarship Tax Credit program.
Legacy Deo is also grateful for a group of early engaged partner schools affectionately referred to as “The First 20.” These schools helped lead the way, establishing strong momentum and shaping an SGO model grounded in best practices, faithful stewardship and shared Christian mission.
A Faithful Opportunity for Christian Education in Texas
At its core, participation in the Scholarship Granting Organization is about stewardship.
It helps connect available resources with real student needs. It helps schools strengthen scholarship support. It helps families access Christ-centered education. And it gives donors, churches and ministry partners a new way to participate in work that reflects their faith and values.
“At Legacy Deo, we believe this work is ultimately about stewardship and mission,” Benaglio said. “By God’s grace and through strong partnerships, we believe this initiative can help sustain and strengthen Christian education across Texas.”
As Legacy Deo prepares for this new opportunity, we invite you to pray for this work and consider how God may be leading you to participate.
Together, in partnership and by God’s grace, we can help more students experience the lasting value of Christ-centered education.