Introducing the new AAA School Fund program
Schools like yours tell us every day that they must raise funds from families and alumni to continue their good work. The new AAA School Fund can super-charge your school’s or district’s ability to raise funds. It does so by using the new Education Freedom Tax Credit (officially the Federal Scholarship Tax Credit).
HOW THE AAA SCHOOL FUND USES THE FEDERAL CREDIT
Gifts that qualify for the Education Freedom Tax Credit will fund the program. The credit begins January 1, 2027. This new federal program aims to expand educational options for school aged children (up to grade 12) in participating states. To do so, it encourages donations to SGOs like AAA Scholarship Foundation. For more details, see the IRS overview of the Federal Scholarship Tax Credit.
Families and alumni who give to your AAA School Fund will designate their gifts for scholarships for eligible students at your school.*
THE TAX BENEFIT FOR YOUR FAMILIES AND ALUMNI
In return, your families and alumni will receive a dollar-for-dollar federal tax credit of up to $1,700 per taxpayer. Married couples filing jointly can receive up to $3,400. In other words, they will owe one dollar less in federal income tax for every dollar they give, up to the credit limit and the tax they owe. By comparison, a gift directly to your school earns only a charitable deduction. Because deductions depend on marginal tax rates, that gift would lower their federal income tax only slightly.
HOW WILL IT WORK?
- First, AAA will work with your school or district to market the benefits of your fund to families and alumni.
- Next, your families and alumni will designate their AAA federal tax credit gifts for your school.
- Then, you will recommend eligible students to apply for AAA federal tax credit scholarships through your fund.
- Finally, your school will have insight into, and visibility of, your fund.
JOIN THE AAA SCHOOL FUND UPDATE LIST
Does this sound like a good fit for your school? If so, please complete the update form below. We will then add you to our contact list and share more information as it becomes available. We look forward to offering this new service to our schools.
AAA School Fund Update List
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*Compliance Notice: The AAA School Fund is a designated referral account within the AAA Scholarship Foundation (AAA), a 501(c)(3) SGO. Under IRC Section 25F, donors may not earmark contributions for a specific student. While AAA intends to prioritize funds for students based on school recommendations, AAA keeps absolute discretionary authority over all awards. AAA may also reallocate funds to other eligible students to meet federal spending requirements. Program features, including student recommendations, remain subject to the final federal regulations.