Your taxes can fund scholarships
Federal and state programs let taxpayers direct money they already owe toward scholarships for students. The right pathway depends on who you are. Here is how we help, and where to start.
How FundEDU supports donors
FundEDU helps donors find the pathway that fits, understand the steps and the timeline, and complete the process correctly, coordinating each contribution with the receiving scholarship organization. Scholarship organizations receive and distribute the funds; schools determine student eligibility.
For how any of this applies to your specific tax situation, your CPA or tax advisor is the right person to ask, and we make it easy to bring them into the conversation.
Federal donors: the Federal Scholarship Tax Credit
Beginning in January 2027, the FSTC gives individual taxpayers, wherever they live, a federal tax credit for gifts to scholarship granting organizations in participating states. It is separate from Pennsylvania's programs, with its own rules and its own pathway.
Pennsylvania donors: direct participation and SPEs
Pennsylvania's tax-credit programs were built for business giving, and eligible businesses can apply and contribute directly. But most individual donors, and many owners of pass-through businesses, participate through a Special Purpose Entity, or SPE: a group entity that lets qualifying taxpayers join together, contribute, and receive the credit through their personal Pennsylvania tax liability.
If you have heard the programs are business only, the SPE pathway is the part of the story you were missing.
