What is a Tennessee SGO, and how does the federal scholarship tax credit work here?

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A Tennessee SGO is a nonprofit scholarship granting organization on the list the Tennessee Department of Education certifies and sends to the IRS, so that gifts to it can qualify for the federal scholarship tax credit starting January 1, 2027. Education Choice Fund is a Tennessee SGO in formation that plans to fund scholarships at Tennessee Christian partner schools once it is on that list.

Education Choice Fund is not affiliated with tnsgo.org or any other organization using the name "Tennessee SGO."

What a Tennessee SGO is

SGO stands for scholarship granting organization. Under the new federal law (IRC Sec. 25F), an SGO accepts gifts from individuals and uses them for K-12 scholarships covering expenses such as tuition, fees, tutoring and classroom supplies (TDOE). SGOs must use at least 90 percent of their income on scholarships (TDOE).

How Tennessee's SGO list works

Tennessee has opted to participate in the federal program (TDOE).

Step Date Status Source
Federal proposed/temporary regulations Oct 1-2, 2026 Released Federal Register
TDOE preliminary interest form Oct 7, 2026 Open TDOE
TDOE formal application "Later this fall" Pending TDOE
Credit begins for gifts Jan 1, 2027 Pending IRC 25F

As of October 21, 2026, Tennessee has not published a list of SGOs.

The federal credit in Tennessee

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). It is a credit against federal income tax, not a deduction. Your own result depends on your tax situation; talk with your tax advisor. Try our credit calculator.

Tennessee SGO vs national SGO: where your dollars go

Tennessee-focused SGO (like ECF) National SGO
Where scholarships go Tennessee students at Tennessee partner schools Under 25F(c)(3), its Tennessee program funds only Tennessee students
School relationships Built with Tennessee schools and associations Varies
Credit amount Same federal credit, under proposed rules Same federal credit, under proposed rules

What SGOs must do under federal rules

Where Education Choice Fund stands

Education Choice Fund is a 501(c)(3) public charity; its Tennessee SGO listing is in formation. ECF scholarships go mainly to Tennessee students at Tennessee Christian schools. We are not yet on Tennessee's SGO list, and we do not accept gifts or pledges before January 1, 2027 and our listing. Education Choice Fund is registered with the Tennessee Secretary of State as required by law, Registration No. CO55725.

For Christian school leaders

We are launching a group of Tennessee Christian partner schools for 2027. See Partner Schools or search the school directory.

Recommend your school

For CPAs and advisors

Read the primary sources on the law and our Donor FAQ. We share dated changes on Updates.

Guides

FAQ

What does SGO stand for?
Scholarship granting organization. It is a nonprofit that receives gifts and turns them into K-12 scholarships. Under Sec. 25F, gifts to an SGO on a participating state's list can qualify for a federal credit starting in 2027.

Is there an official list of Tennessee SGOs yet?
Not yet. The Tennessee Department of Education opened a preliminary interest form on October 7, 2026, and says a formal application will follow later this fall. We will post the list on our Updates page once the state publishes it.

Is Education Choice Fund an approved Tennessee SGO?
No. Education Choice Fund is a Tennessee SGO in formation and has not been placed on Tennessee's list. We will say so plainly on this page when that changes.

How much is the federal scholarship tax 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. Final rules could change details. Ask your tax advisor how it applies to you.

Does Tennessee have its own state scholarship tax credit?
Tennessee participates in the federal credit program. The benefit discussed here is the federal credit.

Can I give to an SGO in another state and still claim the credit?
Education Choice Fund serves Tennessee only.

Which schools can a Tennessee SGO support?
Federal rules define eligible students and expenses, and each SGO chooses where to focus. Education Choice Fund plans to serve Tennessee Christian partner schools. School leaders can recommend their school today.

Can I give now?
No. We do not accept gifts or pledges before January 1, 2027 and our listing on Tennessee's SGO list. Join our notice list on the homepage to hear when giving opens.

Sources