SGO revenue & scholarship projector
Model your Scholarship Granting Organization's potential: enter your expected number of donors and average donation to project gross funds raised, the 90% available for scholarships, your 10% operating budget, and how many students you could fund.
§25F caps each donor at $1,700 (joint-filer treatment is unsettled).
Average award per student.
Simple projection: gross = donors × average donation, split 90/10 per §25F. Real results depend on your donor mix, award strategy, and renewal rates. Use it to sanity-check a plan, not as a guarantee.
How this works
- Enter your expected number of donors and average donation (the §25F credit cap is $1,700 per return; the joint-filer treatment is unsettled).
- We project gross funds raised, then split it 90% to scholarships and 10% to operations per the §25F rule.
- Enter an average scholarship size to estimate how many students you could fund.
- Use it to sanity-check a board plan or a launch budget, then see how software turns the projection into actual donations and disbursements.
Questions, answered
What's a realistic average donation?
Many donors will give to their cap to maximize the credit, $1,700 per return (whether a joint return can claim two $1,700 caps is unsettled pending Treasury guidance). Your real average depends on your donor mix; model a few scenarios (e.g., $500, $1,000, $1,700) to bracket the range.
How many students can I actually fund?
It's the 90% scholarship pool divided by your average scholarship size. Smaller awards spread across more students; larger awards (e.g., full tuition) reach fewer. The projector lets you try different award sizes.
Does the 10% really cover operations?
It has to, §25F caps administration at 10% of income. At low volume that 10% is thin, which is exactly why lean, low-overhead software matters; at higher volume the 10% becomes a real operating budget.
Learn more
- SGO softwareWhat SGO software does and why the federal §25F 90/10 rule makes it essential: donor onboarding and identity verification, payment processing, per-donor §25F receipts, family applications and income verification, an award engine with renewal and sibling priority, separate-account fund accounting, state reporting, and an audit trail. A buyer's checklist and build-vs-buy guide for new SGOs.
- How to start an SGOThe complete, start-from-nothing guide to launching a Scholarship Granting Organization (SGO) for the federal Education Freedom Tax Credit (EFTC / ECCA / §25F): incorporating a nonprofit, getting an EIN, filing for 501(c)(3) (Form 1023 vs 1023-EZ, real fees and timelines), opening the required separate bank accounts, registering to fundraise, meeting every §25F operating rule, getting on your state's list, and a step-by-step checklist, written for founders with zero nonprofit experience.
- Scholarship Granting OrganizationsWhat an SGO is, how organizations get designated by their state, the 90/10 rule, what compliance looks like, and how donors and families choose between SGOs.
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