Scholarship Granting Organization (SGO)
Indiana Code 20-51 and Indiana Code 6-3.1-30.5 create a School Scholarship and School Scholarship Tax Credit Program. Funding for scholarships come from private, charitable donations to qualified scholarship granting organizations (SGOs). Donors (individuals or corporations) are eligible to take advantage of a 50% tax credit. While there are no limits on the size of qualifying contributions to an SGO, the entire tax credit program has a limit of $16.5 million for FY 2022.
A scholarship granting organization is eligible for certification from the Indiana Department of Education (IDOE) if it is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code and is organized at least in part to grant school scholarships. An SGO cannot limit the scholarships it provides under the program to children attending a particular school. SGOs are required to meet organizational and financial reporting requirements.
Parents may apply for scholarships from a certified SGO at a participating school. A student is eligible to apply for the program if the student is a member of a household with an annual income of not more than three hundred percent (300%) of the amount required to qualify for the Federal Free or Reduced Price Lunch Program. The SGO may establish certain requirements for the scholarships they provide. A list of SGO participating schools is included in the General Information section of this webpage.
Both the Indiana Department of Revenue (IDOR) and IDOE have adopted rules to implement the program. The IDOE has created an application and agreement for certification as a scholarship granting organization. An organization that seeks certification as an SGO must submit the application and agreement as well as documents that establish eligibility under applicable statutes and rules. The documents must include:
- Proof of 501(c)(3) status.
- Proof, through articles of incorporation or other documents, that the organization is organized at least in part to grant school scholarships.
- Program policies.
- Program procedures.
- Promotional or descriptive materials about the program, including eligibility criteria and application forms
The application and supporting documentation should be submitted as a single pdf to email@example.com.
The total credits awarded to date are posted on the IDOR's School Scholarship Credit webpage.
- October 2020 Update to Tax Contributions to Scholarship-granting Organization
- Approved Participating SGOs
- SGO Participating Schools
- Donor FAQs
- Parent FAQ
Reports from 2016-2017 up through 2019-2020 are posted below. (* Includes data back to 2011-2012)
- 2019-2020 Annual SGO Program Report
- 2018-2019 Annual SGO Program Report
- 2017-2018 Annual SGO Program Report
- 2016-2017 Annual SGO Program Report*