Donors can give to Scholar Street’s general scholarship fund, or direct their support to a designated fund serving a specific community.
Undesignated gifts support need- and merit-based scholarships across all eligible students, so the Independent Selection Committee will be able to direct funds where the need is greatest in any given award cycle. For most donors, this is the simplest and most responsive way to give.
Under the federal Education Freedom Tax Credit, support isn’t limited to private school tuition. Eligible students include children in public schools who need help beyond the classroom, and funds can be applied to any eligible use the law permits — tutoring, special-needs services and therapies, learning materials, technology, and other qualified K–12 expenses.
For families seeking a values-centered education, supporting students attending religious K–12 schools.
For students with autism, learning differences, and speech or developmental needs requiring specialized instruction, therapies, and support services.
For children of active-duty, reserve, and veteran service members, whose schooling is often disrupted by relocation and deployment.
The designated fund structure can be expanded to reach additional underserved communities as they are identified — giving donors a direct way to support the populations they care about most.
Whether a gift is undesignated or directed to a specific fund, all award decisions will rest with the Independent Scholarship Selection Committee, which will operate outside Scholar Street’s Board. A donor may choose the community their gift serves. A donor may not choose which student receives it. That separation is what keeps the program credible.
In 2025, Congress created the first federal tax credit for K–12 scholarship donations — the Education Freedom Tax Credit (IRC §25F) — effective January 1, 2027. Scholar Street is registered to operate in multiple states and is building its footprint ahead of the January 1, 2027 launch.
A federal tax credit per taxpayer, not a deduction. Nonrefundable, with a five-year carryforward if your liability is smaller than your gift. Treasury has not yet issued guidance on how the cap applies to joint returns.
Any individual with U.S. federal tax liability can claim the credit. There is no income ceiling for donors, and no phase-out. Cash gifts only.
Scholarship eligibility reaches households up to 300% of area median income — a threshold that includes a wide range of working families.
Three steps connect a donor’s contribution to a student’s classroom — with award decisions made independently of the people who raise the money.
A donor makes a cash gift securely through the Scholar Street platform and automatically receives a donation receipt for their records.
Beginning in 2027, donors may claim a federal tax credit of up to $1,700, dollar-for-dollar. Contributions above the credited amount may qualify as a charitable deduction if you itemize.
An Independent Scholarship Selection Committee, seated outside Scholar Street’s Board, will award scholarships based on financial need and academic merit during the designated award cycle.
Scholarship funds are paid directly to the student’s verified school — never to the family — and may be used for tuition, tutoring, textbooks, technology, transportation, and other qualified K–12 educational expenses.
Payment is made to the verified educational institution, not to the household. This protects both the family and the integrity of the program.
Our program is structured to support a student and their siblings each consecutive year, as long as eligibility requirements continue to be met.
Our target award is $5,000, scaling higher as need and funding allow. We would rather fund fewer students well than spread support too thin to actually change a family’s decision about where their child goes to school.
General informational overview only; not tax, legal, or financial advice. Consult a tax professional regarding individual eligibility.