Introducing AAA’s new Employer-Advised Fund!
AAA’s new Employer-Advised Fund is like a charitable investment account for the sole purpose of empowering your employees to fund Education Freedom Scholarships at no cost to them or to your company by leveraging the new Federal Tax Credit Scholarship Program, also known as the Education Freedom Tax Credit Program.
This new federal program begins in January 2027 and is designed to expand educational options for all school aged children (up to grade 12) by encouraging donations to SGOs like AAA Scholarship Foundation.
Current and former employees who donate to your company’s Employer-Advised Fund will designate their donation to be used for scholarships for eligible students at their chosen school(s).*
In return, your employees will receive a dollar-for-dollar federal tax credit. That means they will owe one dollar less in federal income taxes for every dollar they donate to your company’s Employer-Advised Fund. By comparison, they would only get a small decrease in their federal income taxes if they donated that same dollar directly to a non-profit because charitable tax deductions are based on marginal tax rates.
How will it work?
- AAA will work with your company to market the many benefits of your Employer-Advised fund to your current and former employees
- Your employees will designate their AAA Federal Tax Credit donation to their chosen states, cities or even schools!
- Your company and/or employees may recommend eligible students to apply for AAA’s Education Freedom Scholarships through your Employer-Advised Fund page
- Your company will have insight and visibility into your Employer Advised Fund so you can gauge its impact
Does this sound interesting to you and your employees?
If so, please complete our AAA Employer-Advised Fund interest form below to be added to our contact list for more information as it becomes available.
We are excited to offer this new service and hope that you’ll offer this new benefit to all of your employees!
AAA Employer-Advised Fund Update List
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*Compliance Notice: The AAA Employer-Advised Fund is a designated referral account within the AAA Scholarship Foundation (AAA), a 501(c)(3) SGO. Per IRS § 25F, contributions may not be earmarked for a specific student. While AAA intends to prioritize funds for students based on company and school recommendations, AAA maintains absolute discretionary authority over all awards and may reallocate funds to other eligible students to meet federal spending requirements.