Launch and Scale a Section 25F Program Without Building Operations From Scratch
Standing up a compliant SGO requires fundraising infrastructure, financial controls, scholarship-administration workflows, and technology most nonprofits do not have in-house. PSC provides that infrastructure so your organization can focus on its mission and its community relationships.
- Minimum students served
- 0
- Minimum spent on scholarships
- 0
- Carryforward for donors
- 0
- Program launch
- January 1, 2027
What Most Organizations Face When Standing Up an SGO Alone
- Building compliant fund-segregation and accounting controls from scratch
- Recruiting and vetting a base of individual donors under a brand-new tax credit
- Designing a family application and income-verification process that will withstand audit
- Standing up secure technology for donors, families, providers, and staff
- Producing the documentation state officials, auditors, and donors will expect
- Managing renewals, waitlists, and provider payments at scale with limited administrative staff
Section 25F imposes specific requirements on qualifying SGOs, including fund segregation, minimum scholarship spending, minimum student counts, income verification, and required documentation.
Meeting these requirements while also running donor outreach, family communications, and provider relationships is a significant operational lift for most nonprofits, particularly in a program's first years, when donor familiarity with the credit is still developing.
The Infrastructure PSC Provides Participating SGOs
Compliance Operations
Fundraising Infrastructure
Financial Administration
Scholarship Administration
Technology Platform
Impact Reporting
A Typical Path From Readiness Assessment to Launch
Readiness Assessment
PSC reviews your organization's structure, state's participation status, and current operating capacity.
Program Design
Configuration of policies, application workflows, income-verification standards, and award criteria consistent with Section 25F and your state's rules.
Platform Configuration
Setup of your organization's white-label donor, family, and provider portals, plus internal administrative dashboards.
Compliance Build-Out
Implementation of fund-segregation controls, documentation retention, and reporting templates.
Launch
Public launch of contribution and application channels, supported by PSC's donor and family communications systems.
Ongoing Administration
Continuous processing of contributions and scholarships, renewals, reporting, and compliance monitoring.
Your Organization Keeps Legal and Governance Authority
PSC operates as an administrative service provider. The participating SGO retains its nonprofit status, board governance, legal custody of contributed funds, and final decision-making authority over eligibility determinations and scholarship awards.
The Education Freedom Tax Credit creates the opportunity. Scholarship Granting Organizations administer the scholarships. PSC provides the infrastructure that helps those organizations operate.
Federal Requirements Your Organization Must Continue to Satisfy
- Be described in Section 501(c)(3)
- Be exempt from federal income tax
- Not be a private foundation
- Appear on a participating state's SGO list
- Maintain separate accounts for qualified contributions
- Prevent commingling with other funds
- Spend at least 90% of its income on scholarships for eligible students
- Provide scholarships to at least 10 students who do not all attend the same school