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How CEN SGO is run to the statute

The federal credit sets ten rules for the organization that receives your donation. Here's each rule, where it comes from, and what CEN does about it.

  1. 01

    Public charity

    What the law requires
    A 501(c)(3) organization that isn't a private foundation.
    What CEN does
    Recognized by the IRS as a 501(c)(3) public charity.
    Source: §25F(c)(5)(A)
  2. 02

    Separate accounts

    What the law requires
    Credit donations kept in one or more accounts used only for them.
    What CEN does
    Federal credit donations go into dedicated accounts and are never mixed with other money.
    Source: §25F(c)(5)(B)
  3. 03

    On the state's list

    What the law requires
    Listed by each state that has joined, before it can award scholarships there.
    What CEN does
    We apply to each state's list and keep our listing current every year.
    Source: §25F(c)(5)(C); §25F(g)
  4. 04

    Breadth

    What the law requires
    Scholarships to 10 or more students who don't all attend the same school.
    What CEN does
    Scholarships go to students at many partner schools in each state.
    Source: §25F(d)(1)(A)
  5. 05

    90% to scholarships

    What the law requires
    At least 90% of the organization's income spent on scholarships. Income, not just donations.
    What CEN does
    Tracked through the year. Operations are funded within the other 10%.
    Source: §25F(d)(1)(B)
  6. 06

    Qualified expenses only

    What the law requires
    Scholarships pay only for costs on the Coverdell list in §530(b)(3)(A).
    What CEN does
    Scholarships are applied to tuition and fees at partner schools.
    Source: §25F(d)(1)(C)
  7. 07

    Priority order

    What the law requires
    Last year's recipients first, then their brothers and sisters.
    What CEN does
    Built into how awards are made.
    Source: §25F(d)(1)(D)
  8. 08

    No earmarking

    What the law requires
    No donation set aside for a named student.
    What CEN does
    Donors choose a school, never a student. CEN makes every award.
    Source: §25F(d)(1)(E)
  9. 09

    Income verification

    What the law requires
    Household income and family size checked every year, at or below 300% of area median income.
    What CEN does
    Every family is checked each year. Documents are stored encrypted.
    Source: §25F(d)(1)(F); §25F(c)(2)
  10. 10

    No self-dealing

    What the law requires
    No scholarship to a disqualified person, under rules like §4946.
    What CEN does
    Awards to CEN's own leaders and their families are screened out. Treasury will set the details.
    Source: §25F(d)(2)

Donor acknowledgments

Every donation gets a written acknowledgment with a unique donor number, made under the method Treasury described. We report donations to the IRS under those numbers, so you never share your Social Security number with us. (Source: Treasury guidance preview, June 2026)

Reporting and audit

Treasury expects each SGO to report to the IRS and to every state that lists it, and to have an independent audit each year. CEN SGO's financials are audited every fiscal year and its Form 990 is public. (Source: Treasury guidance preview, June 2026)

What's still pending from Treasury

  • The proposed regulations.
  • How the cap works on a joint return.
  • How the credit works with the alternative minimum tax.
  • The final acknowledgment format.
  • The IRS form for claiming the credit.
  • The IRS portal for SGOs.

We'll update this page as each one is published.

Questions about compliance? Email compliance@censgo.org.

Last updated September 28, 2026.