To benefit indirectly from the FSTC, schools and other education service providers need to have at least one relationship with a scholarship granting organization (SGO) on the approved State SGO List. Each SGO will determine if its scholarship recipients can use their funds at your school or program.
Most schools and providers will simply need to make sure that approved SGOs are aware and supportive of their offerings. Treasury has not yet welcomed Governors to submit their State SGO Lists, but schools and providers can plan to reach out quickly once those lists are made public. In the “For Taxpayers and Donors” section of this website, you can find a list of national SGOs that have already indicated interest in serving students across the country.
Schools and providers also have the opportunity to create their own SGOs. The “For SGOs” section provides some insights into the fundraising and operational challenges that groups taking this path will confront. Among other things, you will likely need to create a separate tax-exempt charity, and you will need to serve at least at least 10 students in two schools.
See where your state stands and what comes next.