How It Works
A scholarship granting organization (SGO) provides Education Freedom Tax Credit (EFTC) scholarships to qualifying children. EFTC scholarships will be enacted in 2027 and feature a 100% Federal Tax Credit for contributions made to our SGO, up to $1,700 per taxpayer. Donors can designate the school that should receive the money for scholarships.
SGOs were enacted in 2009 in some states, but this federal program is now available in Texas as well. The funds donated can then be distributed as scholarships for families that meet income and other requirements. SGO scholarships are funded by charitable donations, not by the state.
Gifts to Legacy Deo SGO can be made here beginning Jan. 1st, 2027
The Education Freedom Tax Credit (EFTC) program is modeled after successful state tax credit scholarship programs throughout our country. This program is a part of a modified version of the Educational Choice for Children Act (ECCA.)
Education Freedom Tax Credit (EFTC) Program Key Points
*Based on current guidelines. Final regulations will be released later in 2026.
- The bill allows for a 100% Federal Tax Credit for donations from individuals to Scholarship Granting Organizations, just like our Legacy Deo SGO.
- There is a $1,700 maximum Federal Tax Credit per taxpayer per year.
- Donors can designate their gift to be used for scholarships at the school of their choice.
- Donations can come from individuals in any state, but SGOs can only provide scholarships in their state. Businesses are not allowed to claim this credit.
- There is no sunset date on this legislation. It is permanent.
- There is no aggregate tax cap. The $1,700 maximum Federal Tax Credit is available to every taxpayer in our country.
- There is a five-year rollover on this tax credit.
- Scholarship recipients must come from families earning under 300% of the Median Local Income.
Texas has officially opted-in to allow schools to participate in the program, and Legacy Deo has received federal approval to form the Legacy Deo SGO.
The EFTC program begins on January 1, 2027.
The $1,700 is a 100% Federal Tax Credit and provides a great incentive to donate. If Texans contribute to our Legacy Deo SGO taking advantage of the 100% Federal Tax Credit, we can truly maximize our financial support of Christian Education in Texas. Imagine the impact that this will have on our students attending our schools!
Giving Assistance
Legacy Deo SGO
Making the Dream of a Christian Education a Reality for Families through Scholarships.
Gifts Eligible For Donation To
Legacy Deo SGO
- Cash/Checks
- Credit/Debit
FAQ
For answers, discussions, and clarifications to many common Federal SGO-related donation questions, please download our FAQ.
FAQ
What is the Education Freedom Tax Credit (EFTC)?
The EFTC is a new federal program that allows individuals to receive a 100% Federal Tax Credit—up to $1,700 per taxpayer—when they donate to an approved Scholarship Granting Organization (SGO), such as the one administered by Legacy Deo. These funds are used to provide scholarships for eligible students attending participating Christian schools in Texas.
When does the program begin?
The program officially begins January 1, 2027.
Donations made before this date do not qualify for the federal tax credit. Scholarship funds are expected to be distributed beginning Fall 2027.
What is an SGO?
An SGO (Scholarship Granting Organization) is a nonprofit entity authorized to receive tax-credited donations and award scholarships to students who meet federal eligibility guidelines. Legacy Deo serves as an SGO for Christian schools in the entire State of Texas.
Who benefits from these scholarships?
Scholarships are awarded to students from families earning under 300% of the Median Local Income (MLI) in their county or region. Each county has an official “median income” which is the middle point of household earnings.
Example: If the median income in Round Rock, TX is $100,853.50 then families earning under $302,560.50 qualify. This ensures fairness for families across Texas, where incomes vary widely.
How much can I give and still receive the tax credit?
Each taxpayer can receive a tax credit for up to $1,700 per year. Married couples filing jointly may receive $3,400 if each spouse donates. (TBD) You may donate more than the limit, but the additional amount is treated as a standard charitable deduction.
What is the "five-year rollover" on the tax credit?
If your donation earns a tax credit larger than your federal tax liability for the year, you may carry forward the unused portion for up to five years.
Example: You donate $1,700 → receive $1,700 credit. You owe $1,200 in federal taxes. You use $1,200 this year. The remaining $500 carries forward for future use (up to 5 years).
Can donors designate their gift to a specific Christian school?
Yes.
Donors may direct their gift to any participating school that serves K-12 students. If no designation is made, Legacy Deo distributes funds where most needed.
Are businesses eligible to claim the credit?
No.
The federal program allows individual taxpayers only to receive the credit. Businesses may still donate, but they will receive only a typical charitable deduction, not the federal tax credit.
Does supporting this program cost schools anything?
No direct cost to schools.
While Scholarship Granting Organizations are permitted to retain up to 10% of donated funds to cover program administration, Legacy Deo is committed to stewardship and efficiency and therefore proposes a 7% management fee, maximizing the amount directed to student scholarships.
What types of schools may participate?
The Legacy Deo SGO program is intended to serve participating Christian K-12 schools in Texas, including:
- Elementary Schools
- Middle Schools
- High Schools
This includes schools from a variety of Christian traditions and educational models that align with the program’s participation requirements. Legacy Deo is actively working with school leaders and ministry partners across Texas to build a strong, statewide scholarship network.
How do families apply for scholarships?
Legacy Deo will provide to each school:
- A standardized scholarship application
- Eligibility guidelines
- Submission instructions
Schools will assist families in completing the process. Applications will open in 2027 after funds begin to accumulate.
How do donors make a qualifying gift?
Beginning January 1, 2027, donors may give through:
- Legacy Deo SGO’s secure online portal
- Check mailed to Legacy Deo with required forms
Legacy Deo will issue the official Federal Tax Credit Receipt required for IRS filing.
How can schools prepare now (2026)?
- Attend Legacy Deo/Texas District training meetings
- Review and sign the Participation Agreement
- Prepare admissions and business staff
- Inform parents about scholarship opportunities
- Encourage donors to begin "setting aside" funds for 2027
Who can I contact for more information?
Legacy Deo – Scholarship Granting Organization Team
Kassi Benaglio, SGO Coordinator | 512-615-6238 | kassi.benaglio@legacydeo.org
Patrick Carlove, CEO | 214-995-9407 | patrick.carlove@legacydeo.org