How to become an SGO in Nebraska

1.Be a 501(c)(3) public charity

The IRS has to recognize you as a 501(c)(3), and you can't be a private foundation. Nebraska hasn't said whether it takes nonprofits whose Form 1023 is still pending. If it does, it has to take every pending applicant that asks. Under Treasury's temporary regulations, a state can list a nonprofit whose Form 1023 is still pending only if the exemption, once granted, takes effect by January 1 of the list year. For 2027, that means the nonprofit has to be incorporated by December 31, 2026. (An exemption reaches back to the date you incorporated if you file Form 1023 within 27 months.)

2.Register in Nebraska

Treasury's rules count you as "located in" Nebraska if you're authorized to do business there and follow its charity laws. You don't need an office or staff there. If you're incorporated in another state, you register with the Nebraska Secretary of State ($25). Nebraska stopped registering charities in 1996. You'll also need a registered agent with a Nebraska address.

3.Open a separate bank account for Nebraska

Gifts for the credit go into an account that holds nothing else. If you're on more than one state's list, you keep one account per state and donors pick the state.

4.Put the §25F rules in your bylaws and policies

A new nonprofit has no track record, so the state reads its documents, and a promise to "follow the law" isn't enough. They have to require each rule: at least 90% of your income goes to scholarships, scholarships go to at least 10 students who aren't all at the same school, you verify household income, past recipients come first and then their siblings, no donor can earmark a gift for a particular student, and no scholarships go to insiders.

5.Register in the IRS SGO portal when it opens

Treasury asks every SGO to register in the IRS portal, ideally before a state lists it. The portal gives you the donor-number format your receipts use. It hasn't opened yet.

6.Apply when Nebraska opens its application

No forms yet. The Department of Revenue says it will post the forms and procedures for becoming a Nebraska certified §25F SGO once they are set, and old Nebraska Opportunity Scholarship forms do not apply. Subscribe to its "IRC §25F Nebraska SGO Certification" email list for the announcement.

7.After you're listed

Send each donor a written acknowledgment by January 31 and report the gifts to the IRS by February 28. Under Treasury's proposed regulations, which you can rely on for 2027, you also file a yearly certification and report (with a copy to every state that lists you), get a yearly audit, and spend at least 90% of each year's income on scholarships by the end of the next year.