Most grandparents want two things for the grandchildren: a future with real opportunity, and a faith that holds. CEN exists to keep Christian education within reach for the families who want it. Starting with the 2027 tax year, a new federal tax credit will give you a way to support that mission with money you are already sending to Washington. CEN SGO is the program that makes the connection, the bridge between what you owe and a scholarship that reaches a family.
This is not a stretch gift. It is a redirect. You send part of what you already owe in federal taxes to a Christian school scholarship instead of the federal general fund. The opportunity is real, and it is worth understanding before the window opens.
What the credit lets you do
The federal scholarship tax credit is a tax credit, not a deduction. A deduction lowers the income you are taxed on. A credit lowers the tax itself, dollar for dollar, up to an annual per-taxpayer limit set by the law. The exact figure will be confirmed as the rules are finalized. The point is simpler than the math: a portion of what you owe can become a scholarship for a child in a Christian school, at no cost to you beyond what you were going to pay anyway.
That last part matters, so it is worth being precise. “No extra cost” is true up to your federal tax liability. The credit is non-refundable, which means it can reduce what you owe down to zero, but it does not pay you money back beyond that. You are not writing a new check on top of your taxes. You are choosing where part of your existing tax bill goes.
If you cannot use the full credit in one year, the law lets you carry the unused amount forward for up to five years. So a larger gift does not go to waste if your liability is smaller in a given year.
Why does this fit how grandparents already give
Grandparents are often the ones who think in decades. You are already investing in the long arc of a child’s life. This gives that instinct a structure.
You can designate a participating school, which means you choose where your support lands. You might pick the school your grandchildren attend, the school your church runs, or a Christian school in a community you care about. What you cannot do is name a specific student. The law keeps gifts pointed at schools and scholarship pools, not at individual children, which protects the families and keeps the program clean. The scholarship reaches a family who qualifies, and you have the assurance that it stays inside Christian education.
Eligibility for families runs to 300 percent of Area Median Gross Income, not the poverty line. That is a wider door than people expect. It means the scholarships reach working families, well beyond those at the very bottom of the income scale, in schools that teach what you believe.
A gift that lasts longer than you do
There is a legacy here that goes past the tax form. When you fund a scholarship at a Christian school, you are helping shape a child’s character and faith at the age it forms. That is the kind of investment that outlives the giver. You are not buying a year of tuition. You are putting your name behind the formation of the next generation, in schools built to do exactly that.
CEN SGO is built on a proven Ohio model, with a real record of scholarships awarded before the federal program existed. The mechanism is new. The work is not.
Frequently asked questions
Does this cost me anything beyond my taxes?
No, up to the amount of federal tax you owe. You are redirecting part of an existing bill, not adding a new one. Because the credit is non-refundable, it can lower what you owe to zero but will not pay you back beyond that.
Can I choose which school my support helps?
Yes. You can designate a participating school. You cannot name a specific student, and a scholarship reaches a qualifying family at the school or pool you support.
When can I give?
The credit is effective for the 2027 tax year, so the giving window has not opened yet. The thing to do now is sign up to be notified, so you are ready the moment it does.
If you have a CPA or financial advisor, this is a good conversation to start early. We cover that in Talking to your CPA about year-end giving through the SGO.
You can also read how the credit differs from a deduction in Tax credit, not tax deduction: why the difference matters, and where your gift goes in Where your gift goes, and how a scholarship reaches a family.
Be ready when the window opens
The 2027 window is coming. Choose the school you want to stand behind, and sign up so you can give on the day it opens.
Sources:
- IRS, Federal Scholarship Tax Credit (FSTC)
- Brownstein Hyatt Farber Schreck, Federal Scholarship Tax Credit Q&A Guide
- National Christian Foundation, 10 principles of biblical generosity
