The Christian Education Network exists for one reason. Cost should never decide whether a family can choose a Christian school. CEN SGO is how we act on that. It is the program that connects a donor’s federal taxes to a scholarship that reaches a real family.
This article is the starting point. It explains what a scholarship granting organization is, how the new federal tax credit works, and how the two fit together. The short version: you redirect part of what you already owe in federal taxes, a Christian school scholarship is funded, and the cost to you is nothing beyond what you owed in the first place.
What CEN is, and why CEN SGO exists
CEN is the Christian Education Network, a national mission to strengthen Evangelical and Catholic schools and put a Christian education within reach for more families. The barrier those families face is almost always the same one. They want the formation, the faith, and the character a Christian school builds. What stops them is the tuition.
CEN SGO is the program that lowers that barrier. It is the only national scholarship granting organization built for Evangelical and Catholic schools, and it is built on a proven model that already works in Ohio. CEN is the why. CEN SGO is the how.
What is a scholarship granting organization?
A scholarship granting organization, or SGO, is a nonprofit that collects donations and turns them into scholarships for students. An SGO is required to spend at least 90 percent of what it receives on scholarships, so the gift you give does the work you intend.
CEN SGO is a 501(c)(3) scholarship granting organization. Donors give to the SGO. The SGO awards scholarships to qualifying families at participating Christian schools. A donor can designate a participating school. A donor cannot direct a gift to a specific student, because the law keeps that choice with the SGO. That rule protects fairness, and it is confirmed by the Bipartisan Policy Center’s explainer of the program.
How the federal tax credit works
For the first time in American history, there is a federal tax credit for gifts to scholarship granting organizations that serve K-12 students. The credit is dollar-for-dollar, up to an annual per-taxpayer limit that will be confirmed once final rules are published. Dollar-for-dollar means a gift to CEN SGO reduces what you owe the federal government by the same amount, rather than reducing the income that gets taxed.
A few details that matter:
- The credit is not live yet. It applies starting with tax year 2027, for cash gifts made on or after January 1, 2027. No one claims it on an earlier return.
- It is non-refundable. The credit can bring what you owe down to zero, and no further. See [internal: What is a non-refundable tax credit?] for the full picture.
- Unused credit carries forward up to five years, so a gift larger than one year of liability is not lost.
- You cannot also claim a charitable deduction for the same gift, and the federal credit is reduced by any state credit you claim on the same gift.
These mechanics come from the IRS and from the Brownstein Hyatt Farber Schreck tax practice, which published a detailed guide to the credit.
A credit, not a deduction
This is the difference families ask about most. A deduction lowers your taxable income. A credit lowers your tax bill directly. The federal scholarship tax credit is a credit. We say “tax credit,” never “deduction,” because the two are not the same and the credit is the better deal. The full comparison is in [internal: Tax credit, not tax deduction: why the difference matters].
Who qualifies, and where the money goes
Scholarships reach families at 300 percent of Area Median Gross Income or below. That is a generous threshold, not a poverty line, so a wide range of working families qualify. The National Catholic Educational Association notes the same benchmark reaches roughly nine in ten K-12 students.
When you give, you can designate a participating school you want to support, or let CEN send your gift where the need is greatest. Either way, the SGO awards the scholarship, and the dollars stay close to the schools and families they were meant for. [internal: Where your gift goes, and how a scholarship reaches a family] follows a single gift from start to finish.
Built on a proven model
CEN SGO is built by the team behind the Ohio scholarship network, which has a real record of scholarships awarded to families who needed them. The federal credit opens that same model to Evangelical and Catholic schools across participating states. [internal: Why the SGO was created, and the opportunity it opens for Christian education] tells that story.
FAQ
Is the federal tax credit available right now?
No. It applies to gifts made on or after January 1, 2027, claimed on your 2027 return. Between now and then, schools can register and donors can sign up to be notified the moment the giving window opens.
Can I choose which school my gift supports?
Yes. You may designate any participating school. You cannot direct your gift to a specific student, because that choice stays with the SGO under the law.
What does CEN SGO do with my donation?
At least 90 percent of every gift goes to scholarships. CEN SGO is the only national SGO built for Evangelical and Catholic schools.
Get notified
The giving window opens in 2027. If you lead a school, you can register your school now so you are listed before donors arrive. If you plan to give, Get notified and we will reach you the day the window opens. Learn more on the Donors and Schools pages, or visit Resources for the full set of guides.