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SAI's Scholarship Granting Organization (SGO)

As you may know, the "Big Beautiful Bill" includes provisions to establish Scholarship Granting Organizations (SGOs). While the primary intent of these tax credit dollars is to support private school scholarships, the legislation includes specific carve-outs that benefit public schools.

The primary obstacle for public school districts looking to access these funds is the requirement to operate through a registered 501(c)(3) organization. Because donations must strictly follow the uses outlined in the bill, districts with existing foundation funds will likely prefer not to alter or convert them.

How SAI Can Help

School Administrators of Iowa (SAI) is stepping in to solve this administrative hurdle. We hold an inactive 501(c)(3) foundation—originally used for Wallace funds—that we are converting into a dedicated SGO. By leveraging our existing foundation, SAI can serve as a centralized hub for any Iowa public school district. We will handle the backend tracking, fund management, and administrative burdens so your district doesn't have to.

  • After-school programming
  • Tutoring services
  • Summer school programs
  • Additional qualifying educational activities will become known once more specific rules are provided this fall.
  1. Donation: Local Iowans make a charitable contribution to SAI’s SGO and designate the money for your specific school district.
  2. Tax Benefits: Donors receive up to a $1,700 tax credit. SAI handles all tax verification paperwork and documentation.
  3. District Execution: Your district determines which current programming applies and/or establishes new programming that may be available through this revenue stream.
  4. Funding Distribution: Student participants apply for scholarships to cover the program costs, which are paid out directly from your district's designated SGO funds.

Scholarship Granting Organization Flowchart
This program offers a major opportunity for local taxpayers (including district employees, parents, and grandparents) who owe at least $1,700 in federal taxes. By redirecting up to $1,700 of their tax liability to the SGO, taxpayers receive a dollar-for-dollar tax credit. It costs the donor nothing extra, but directly channels millions of potential tax dollars into local student learning experiences rather than federal revenue.
The law allows SGOs to retain up to 10% of incoming funds to cover administrative costs. SAI’s Executive Committee has authorized us to move forward, and SAI will cover all initial startup costs. As participation grows, our goal is to lower this administrative fee below 10%.
The U.S. Department of the Treasury is expected to release additional guidelines by the end of the month. Donations can begin as early as January 1, 2027, and we want to ensure everything is in place for a successful launch.
The Ask & Next Steps

Please let us know if your district is interested in participating by completing a short form.

Complete Short Survey

SAI plans to host a podcast and/or webinar to provide additional information and answer questions. If your district decides to partner with us, we will handle the administrative workload and provide communication materials to help you educate your local community. 

Our goal is to relieve your administrative burden so you can focus on creating impactful learning opportunities for Iowa students.