Tennessee SGO
For Donors

Your Donation in Action

Here's the path your contribution takes — and what it makes possible for Tennessee students.

What a Scholarship Granting Organization Does

A Scholarship Granting Organization, or SGO, is a nonprofit that collects charitable contributions and uses them to fund tuition scholarships for students. Tennessee SGO is a 501(c)(3) organization that serves as the link between donors, families, and K-12 schools. For a donor, the SGO is the vehicle that turns your contribution into a qualifying federal tax credit for you and a scholarship for a student attending a Tennessee school.

  1. 1

    You Donate

    Contribute up to your federal tax credit — $1,700 single, $3,400 joint.

  2. 2

    Students Receive Scholarships

    Funds support K-12 tuition at member schools.

  3. 3

    You Get a Federal Tax Credit

    Dollar-for-dollar federal credit returned at tax time.

Your Donation Can Change a Student's Future

Your maximum federal credit
$1,700

per individual · $3,400 for couples filing jointly

How the benefit works
Dollar‑for‑dollar

a federal tax credit, not just a deduction

Out-of-pocket cost to you
$0

your contribution is returned as a federal tax credit, up to your tax liability

Tax Credit Calculator

See exactly how much you can save by redirecting your tax dollars with a dollar-for-dollar federal tax credit.

Your Information
Enter your tax filing details

Maximum tax credit: $1,700

$

This is the total federal income tax you expect to owe or have withheld

Tennessee Advantage

Tennessee does not have a state income tax, so you receive the full federal credit with no offset.

Your Contribution
$0

Tax credit up to $1,700 based on your federal tax liability

Federal Tax Credit
$0

Dollar-for-dollar credit on your next tax return

Your Effective Cost
$0

Your contribution is completely offset by the federal tax credit

This calculator is for informational purposes only and does not constitute tax advice. Please consult with a tax professional for your specific situation.

How the credit reduces what you owe
Your contribution comes back as a dollar-for-dollar credit, lowering your tax bill.
$0
Tax you owe
−
$0
Your tax credit
=
$0
Your reduced tax

You owe $0 in taxes and give $0 as a tax credit, so what you owe drops to $0.

Frequently Asked Questions

Common questions about contributions and the federal tax credit.

What is the federal tax credit?
Under IRC Section 25F, donors can receive a dollar-for-dollar federal income tax credit for contributions to Scholarship Granting Organizations. For single filers, the maximum credit is $1,700. For married couples filing jointly, each spouse can claim up to $1,700 in tax credits, for a maximum combined credit of $3,400.
How much can I contribute?
You can donate as much as you'd like! Contributions must be made in cash (for example, by check, card, or electronic transfer). The first $1,700 of your contribution ($3,400 for married couples filing jointly) is eligible for a dollar-for-dollar federal tax credit. Any amount beyond that still directly supports students attending Tennessee schools.
Is my contribution tax-deductible?
Your contribution is eligible for a federal tax credit under Section 25F. Consult your tax advisor about itemization and other tax implications.
What happens to my contribution?
Your contribution is processed by Tennessee SGO and distributed as scholarships that are applied towards eligible students' tuition obligations. A small portion covers administrative costs, at least 90% of your contribution will directly fund student scholarships.
Is there a deadline for contributions?
Contributions can be made throughout the year. However, to claim the credit on your current tax year return, contributions should be made by December 31st of that tax year.