Donors
Transform a Child’s Education and Receive State or Federal Tax
Benefits
Your contribution can shape a student’s educational path while also lowering your federal or state tax liability. Indiana’s State Tax Credit Program and the Federal Scholarship Tax Credit Program (FSTCP) operate independently, and you’re welcome to participate in both. Each program requires its own separate gift, and a single donation cannot be applied to both credits. Giving to either or both programs provides scholarship support that helps students attend one of our partner schools.
Who Qualifies to Give
Indiana State Program
50% state tax credit. 50% federal deduction if you itemize.
Individuals and businesses qualify for this state tax credit. There is no limit on the amount that you can give, but the state does limit the amount available for the credits. For the fiscal year beginning on July 1, 2026, that limit is $18.5 million annually. See available tax credits.
Ways to Give
Check
Credit Card or ACH
Non-Cash Assets
Federal Tax Credit Program
100% federal tax credit. No deduction if you itemize.
Individuals and business qualify for the Federal tax credit. Starting January 1, 2027, you can contribute to Scholarships for Education Choice and receive a 100% federal tax credit of up to $1,700 annually. Learn more about the forthcoming Federal Program HERE.
Ways to Give
Check
Credit Card or ACH
Please consult a tax professional about your individual tax situation!
Click the button below to estimate how tax credits and deductions impact the TRUE COST of your donation.
Indiana State Program FAQ’s
Q: Is there a limit to how much I can give and still receive the credit?
No, there is no limit on your donations as long as there are tax credits available (see section above for link to check remaining credits). The credit is applied to your Indiana state tax liability. If the amount of your credit exceeds your tax liability, the unused credit may be carried forward for up to nine years, but it may not be carried back or refunded.
Q: Can I designate a school or student to receive my gift?
Yes, and no. You may designate one of our participating schools to receive your gift. However, SGO donations may not designate a particular student; this would be considered a tuition payment and is not eligible for a tax credit.
Q: If I sign up for a recurring gift, can I go back and change the information on it myself?
If someone makes a monthly gift they can always go back and control that gift – timing, updating card information etc. To login, go to https://donor.idonate.com/login and use the email used on the donation.
Q: What if I don't have a particular school in mind?
We recommend that you browse our list of participating schools, or talk to us if you have an interest in schools that align with your interest area (geographic area, special needs, urban/rural, classical, faith-based, etc.). We also welcome donations to our general fund, which is used for scholarships to support students attending all of our partner schools.
Q: How do I claim my credit?
The receipt letter that you receive from Sagamore will include the amount of the donation, the tax credit certification number, and instructions for claiming the credit. We also send out year-end letters in January that summarize your donation and include detailed directions.
Q: Is this gift eligible for a federal deduction?
Yes, if you itemize. The amount eligible for federal tax deduction as a charitable contribution is 50% of the value of the SGO gift. All gifts are eligible for a 50% Indiana state tax credit, so long as credits remain.
Q: Can I give using a Donor Advised Fund?
The Indiana Department of Revenue will give a donor a tax credit certification number for a gift given from a DAF. HOWEVER, we strongly advise against giving to the SGO program through a DAF because of the potential penalties and fines from the IRS. It is against federal law to benefit from a donation through a DAF, the state tax credit received on an SGO is a clear benefit. If you want to use DAF funds, please consider giving directly to the school.
Q: Can I give to the SGO through my IRA?
It is really important to discuss the best way for you to give with your tax professional. Anyone who is over 70 1/2 can give to the SGO from their IRA without a penalty. A gift from an IRA will get the 50% state tax credit. It is our understanding that a gift made from an IRA would NOT be considered a Qualified Charitable Distribution and would need to be included as taxable income on your federal taxes. If you itemize you would deduct 50% as a charitable donation.
Federal Program FAQ’s
Q: Can I claim both the state tax credit and a federal tax credit on a single gift made?
The Indiana State Tax Credit Program and the Federal Scholarship Tax Credit Program (FSTCP) operate independently. Donors may contribute to both programs, provided the contributions are made as separate gifts. A single gift cannot be applied to both credits.
Q: Can I claim the federal gift as a charitable deduction if I itemise?
No. A donation made through the Federal Program only receives the credit; you can not claim it as a deduction.
Q: Can a married couple filing jointly claim the federal tax credit for a gift of $3,400?
This is unclear. The law passed in July 2025 (ECCA) states that there is a maximum credit of $1,700. It doesn’t differentiate based on filing status. We are expecting this to be clarified in the regulations that are forthcoming from the Treasury Department.
Q: Can a resident of a state that did not opt in to the federal program give to a school in a state that did opt in and receive the federal credit?
We think so, but it is unclear. The ECCA did not address this potential scenario. We will need to wait till the final regulations are established to guide us on this.
Q: When will the Treasury Department release the regulations?
Good question!!! We would love to know the answer too! When they do, we will update this site.