Good stewardship: making the most of the dollars you redirect

Christian giving has always carried a responsibility beyond the act itself. You're directing resources entrusted to you toward a purpose that reflects your values. The federal scholarship credit is a new tool for that kind of stewardship, and it works best when you use it well.

What you're really doing

When you donate to CEN SGO, you redirect part of your federal income tax to a Christian school scholarship instead of the Treasury. The credit is dollar for dollar, up to $1,700 per taxpayer a year. The amount you donate costs nothing beyond what you already owed.

1. Size the donation to what you owe

The credit is non-refundable. It lowers the federal income tax you owe, but it can't pay out more than that. A donation sized to your actual tax earns the full credit in the same year.

If you can't use it all, the unused credit carries forward for up to five years, oldest first. After five years it expires. So know roughly what you'll owe before you commit to an amount. Your tax professional can tell you quickly.

2. Plan state and federal donations

If your state runs its own scholarship tax credit program, you can give to both, but you cannot claim a federal and state credit on the same dollars. To take full advantage of a state's program and the federal program, you need to donate to both: one donation to CEN SGO for the federal credit, and one to your state program for the state credit.

3. Choose where your support goes

You can designate a CEN partner school. You can't name a student, but you can send your support to a school you care about: the one your church works with, the one your grandchildren attend, or one in a community where cost is a bigger barrier. The scholarship reaches a family at that school.

4. Plan early

Donations count from January 1, 2027. Donors who know roughly what they'll owe and have chosen a school are ready to give on day one. Planning early also lets you spread your donation across the year, for example with monthly donations, if that suits you better.