As I continue to reflect on the conversations that I had in Chicago, a second question that kept getting asked keeps coming to my mind: realistically, how much time do we have?

January 1 2027 is the EFTC launch date. That day, for the first time, an individual taxpayer can make a donation and claim the Education Freedom Tax Credit against it. The money has the opportunity to start moving. Families can start getting the financial help that they desperately need! The schools and communities ready when that day comes are going to be the ones who make the most of this opportunity.

So let me walk you through what "ready" actually takes, because it is more than most expect, and per usual almost none of it is glamorous.

The Mountain You Do Not See

Before any scholarship dollars can be donated, there are organization(s) that need to be built. A scholarship granting organization must be a 501(c)(3), which must be formed, listed and registered to operate in your state, and desired with the compliance and reporting to satisfy both the IRS and the eventual Treasury rules. These organizations are currently in the process of setting up bank accounts, and drafting written policies for how awards are applied for, granted, and awarded.

Thankfully, none of that is your job as a school, but somebody has to do it, and it has to be done right, because the whole structure rests on it. This is the unglamorous work that decides whether January is a launch or a scramble, and which SGO(s) in your community are going to be leading the field when it comes to thought development and partnership opportunities.

How to Think About Donors

Some states, like Pennsylvania, already have scholarship-related donors: businesses and individuals that give through state level programs (like EITC and OSTC) often contributing for a slice of a capped credit pool. Many schools and leaders assume the EFTC is just more of that.

Instead, the EFTC is an individual credit, claimed by a person, directly on their 1040. That means a separate pool of donors entirely: the grandparent nobody thinks to ask, the alum two years into a good job, the parent who pays tuition and the business owner down the street who has supported your community and/or employed your alum for decades.

So think about what that requires. Most schools keep donors in a spreadsheet and run financial aid on a separate island. Doing the EFTC well means new processes: confirming credits,

cultivating donor channels that don't currently exist, and moving scholarship awards to families cleanly. That is real infrastructure, requiring real expertise, often more than most front offices carry today. However, building that sort of support is exactly what we do.

The Countdown, Month by Month

So, what are the priorities as we approach the second half of 2026? Here are some key milestones.

By September, make the EFTC a stated priority. Make sure that your board, your faculty, and your families are aware of and excited for the program. The Treasury has promised to release some updated guidance this month, so that is a great chance to start some discussion!

By November, review your State’s approved list of scholarship granting organizations in order to identify possible partners. Additionally, begin developing a list of everyone in your community with federal tax liability, and those within the 300% AGMI scholarship eligibility threshold. This is work that ensures your financial aid office is aware of potential donors, as well as eligible recipient families, so that donations can become scholarships via your SGO partner(s) as soon as possible.

By January, you are ready to turn that groundwork into donations. The base you cultivated is the base your SGO partner(s) draw donors from, and they fund the scholarships awarded to your students. The more we are able to highlight these donors, scholarships, and impact, the more funding these programs will have.

Where We Are

FundEDU is doing everything we can to build the systems needed for this credit now, so that we can continue to support schools and families, even before the EFTC program launches!

So, how much time do you have? More than enough to be ready, if you start this fall! If you want to be on our radar when the doors open, start by reviewing your readiness.

By Jeff Wilson, Founder & President, FundEDU | July 2026