National SGO vs Tennessee SGO: what is the difference for a Tennessee donor?
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Short answer: Under federal law, every SGO funds scholarships only in the state where it is listed, so the credit is the same whether you give to a national organization's Tennessee program or a Tennessee-based SGO. The differences are in who runs it, which schools it works with, and how you reach someone locally.
Education Choice Fund is not affiliated with tnsgo.org or any other organization using the name "Tennessee SGO." This page describes types of organizations, not any specific one.
The rules are the same for both
- Same credit: Up to $1,700 per individual; up to $3,400 for a married couple filing jointly if each spouse gives $1,700, under proposed rules (Federal Register 2026-20277).
- Both must be on Tennessee's list for a gift to count in Tennessee (26 U.S.C. 25F(c)(5)(D), (g)) (26 USC 25F).
- Both must fund scholarships "solely within the State in which the organization is listed" (25F(c)(3)).
- Both must spend at least 90 percent of income on scholarships, serve 10 or more students not all at one school, and not earmark gifts for a particular student (25F(d)(1)).
Side by side
| National SGO (Tennessee program) | Tennessee SGO (like Education Choice Fund) | |
|---|---|---|
| Where funds go | Tennessee students, if listed in Tennessee (25F(c)(3)); the organization may also run programs in other states | Tennessee students only |
| Who decides priorities | Often a national office with state staff [varies by organization] | A Tennessee board |
| Local contact at filing time | Varies; may be a national call center or a state contact | A Tennessee contact at info@educationchoicefund.org |
| Partner schools | Varies; may span school types | Tennessee Christian partner schools |
| Credit amount | Same | Same |
Questions to ask any SGO before you give
- Are you on Tennessee's SGO list for this year?
- Who can I call in Tennessee if my tax advisor has a question at filing time?
- Which schools do you work with?
- What share of income goes to scholarships, beyond the 90 percent floor?
Where Education Choice Fund stands
Education Choice Fund is a 501(c)(3) public charity; its Tennessee SGO listing is in formation. It is not yet on Tennessee's SGO list. We do not accept gifts or pledges before January 1, 2027 and our listing on Tennessee's SGO list. Education Choice Fund is registered with the Tennessee Secretary of State as required by law, Registration No. CO55725.
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Guides
- Federal Scholarship Tax Credit (Education Freedom Tax Credit) in Tennessee: Brief for CPAs
- Tennessee SGO Scholarships for K-12 Families
- All guides
FAQ
Is the credit bigger if I give to a Tennessee SGO?
No. The credit is the same. Up to $1,700 per individual; up to $3,400 for a married couple filing jointly if each spouse gives $1,700, under proposed rules.
Can a national SGO send my Tennessee gift to another state?
Under 25F(c)(3), a qualified contribution funds scholarships solely within the state where the organization is listed. Ask any organization how it applies this rule to its own structure.
Can I give to Education Choice Fund now?
No. We do not accept gifts or pledges before January 1, 2027 and our listing on Tennessee's SGO list.
Sources
- 26 U.S.C. 25F: https://www.law.cornell.edu/uscode/text/26/25F
- Federal Register 2026-20277: https://www.federalregister.gov/documents/2026/10/02/2026-20277/federal-scholarship-tax-credit
- TDOE, Scholarship Granting Organizations: https://www.tn.gov/education/about-the-tdoe/scholarship-granting-organizations.html