Fund their future at no cost to you.
Launching January 1st, 2027, the new Federal Scholarship Tax Credit Program allows donors to turn their tax dollars towards scholarships by receiving a dollar-for-dollar federal tax credit of up to $1,700 for individuals (up to $3,400 for married couples!). This means you’ll receive your entire donation back when you file your federal income tax return.
Donations fund crucial needs like tutoring, books, school supplies, and scholarships, often at no net cost to the donor.
For many donors, this means supporting a student's education with dollars that might otherwise have been paid in federal taxes.
No Net Cost. Extraordinary Impact.
How It Works (Starting January 1, 2027)
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Step 1 contributeGive to The Oaks Academy through Sagamore SGO. |
Step 2 REceiveGet the entire donation back on your tax return. |
Step 3 impactProvide a life-changing Oaks education for a child, along with needed supplies and services |
Take advantage of this opportunity if you:✔ Pay federal income tax ✔ Want to maximize your giving and impact ✔ Care about helping a child in need receive a high-quality education
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What We Know Today:
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What We’re Still Waiting On:
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(Last Updated October 2026)
State vs Federal Comparison
You may already be familiar with Indiana’s SGO program. The new federal program builds on that same model with even greater potential impact for students and donors.
One important clarification: you cannot use the same gift for both state and federal credits.
| Indiana SGO Program | Federal SGO Program | |
|---|---|---|
|
TAX CREDIT |
50% - 80% |
100% |
|
GIFT AMOUNT |
No limits per donor* |
$1,700 per donor ($3,400 for married couples) |
| TIMING |
Available now |
Begins 2027 |
| QUALIFIED DONORS |
Any Indiana taxpayer, individual or corporate |
Any individual with a federal tax liability |
* Indiana caps overall available credits at $18.5 million, starting over every July 1st.
Frequently Asked Questions
| What is the Federal Scholarship Tax Credit Program? |
|---|
| The new Federal Scholarship Tax Credit Program allows donors to turn their tax dollars into scholarships for Indianapolis students. Donations will cover qualified education-related expenses for a child, including tuition, fees, tutoring, books, school supplies, special education expenses, and more, at no net cost to you. |
| When does it begin? |
| Starting on January 1st, 2027, individuals can receive a dollar-for-dollar federal tax credit, up to $1,700. This means you’ll receive your entire donation back when you file your federal income tax return. |
| How much can I receive in tax credits? |
| You can make a gift of up to $1,700 and receive a dollar-for-dollar federal tax credit. Married couples filing jointly can claim a combined credit of up to $3,400 when each spouse makes a gift of $1,700. |
| Is this a deduction or a credit? What’s the difference? |
| The great news is that this program offers a tax credit, not a deduction. A dollar of tax credit is much more valuable than a dollar of tax deduction. While a deduction lowers your taxable income, a credit directly reduces the amount of federal tax you owe. |
| Who is eligible to participate? Should I talk with my tax advisor? |
| Any taxpayer with federal liability can choose to redirect part of their federal tax payment to fund need-based scholarships for Indianapolis students. This connects generous individuals with students from lower and middle-income families at little or no additional cost. We encourage you to speak with your tax professionals to determine your specific tax situation and whether this opportunity can benefit you. |
| Who benefits from the scholarships? |
| This program was intentionally designed to help lower- to middle-income families access quality education and choose the right school for their child. Eligible families earn below 300% of the area median income. |
| I already donate to Sagamore and receive the Indiana scholarship tax credit. Will I automatically receive the federal tax credit in 2027? |
| No. While this new federal program builds on that same proven model of the state program, you cannot use the same gift for both state and federal credits. Separate gifts are required to receive both credits. Please continue to donate to the state program and make an additional gift (up to $1,700) to the federal program in 2027 for a 100% federal tax credit. |
| Can I donate from my donor-advised fund (DAF) and receive a tax credit? |
| No, gifts made through DAFs are not eligible for a federal tax credit since the donor already received a tax deduction when they originally contributed to the fund. Many of our supporters will make the most of their charitable contributions from their DAF and additionally support The Oaks to leverage the impact and tax credit of the SGO scholarship programs. |
| Can I carry the credit forward? |
| Yes! The latest federal guidance states that you can carry the credit forward up to five years. |
| What if I don’t owe $1,700 in federal taxes? |
| Not everyone owes federal taxes. Please consult your tax advisor to determine whether you qualify for this new program. |
| What do we still not know? |
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Indiana has already opted into this incredible program, and information on this page reflects current federal guidance as of October 2026. The IRS continues to accept public comments on proposed regulations, and additional guidance may be issued before the program launches in 2027. Please consult your tax advisor regarding your individual situation. We’ll continue to share the latest information as we learn more, and joining our list is the best way to stay informed. |
