Frequently Asked Questions
What is this tax credit?
The federal government will provide a tax credit of up to $1,700 per individual for donations to eligible 501(c)(3) Scholarship-granting Organizations (SGOs) beginning in 2027. Eligible organizations are listed by individual states to provide scholarships to students in their states. Students can only receive scholarships in states that choose to participate, but Americans from any state can donate to eligible organizations in any state and receive the tax credit.
What is a non-refundable tax credit?
A non-refundable tax credit reduces your tax liability by the amount of the credit, but not below zero (that is, it can increase your refund, but it can’t make the government pay you “negative tax”). This is not a tax deduction, which reduces your overall income for tax purposes, but doesn't directly reduce your tax liability. Since this is a non-refundable tax credit, donors with large enough tax liabilities can expect to make their donation at net zero cost. Donors can then receive a larger refund at tax time, or they can reduce tax withholding by filling out a new W-4 form with their employer, increasing their take-home pay each period during the year.
Is the St. Basil Scholarship Fund or the Basiliad Institute an eligible scholarship-granting organization?
Each state determines which organizations are listed once they have confirmed their eligibility under federal law. Once the IRS finalizes its regulations, states can confirm and lay out processes for eligibility, the St. Basil Scholarship Fund will work to become eligible in as many as possible.
The Basiliad Institute Inc. is founding the St. Basil Scholarship Fund as an independent non-profit to operate the scholarship program. For now, it is only providing administrative support and initial funds to jumpstart the program. Eventually, the St. Basil Scholarship Fund will run the program in all states.
How much can couples donate?
Anyone can donate as much as he wishes, with up to $1,700 per year per individual adult eligible for the tax credit. That means couples filing jointly can donate $3,400 per year.
Can I donate more than $1,700?
Donations beyond those eligible for tax credits are still eligible as tax deductible charitable donations to a 501(c)(3). For some individuals, taking the entire donation as a deduction instead of a tax credit could be more beneficial.
We also encourage donors to give to our parent organization, the Basiliad Institute, which works across multiple fields for the good of the Church and the country.