Services – SGO Requirements

Scholarship Granting Organization Requirements

Thinking about becoming an SGO? Partnering with ACE is a better solution!

Services – SGO Requirements

Scholarship Granting Organization Requirements

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ACE offers a strategic alternative for organizations considering becoming a qualifying Scholarship Granting Organization (SGO). Here’s how we can collaborate to your benefit:

  • EFTC Program Management: ACE handles administration

    • Ensuring compliance and operational efficiency
    • Recruiting and retaining mission aligned staff
    • Launching national and state marketing campaigns
    • Providing in-house, multi-lingual customer support

  • Donor Facilitation

    • Your donors contribute through ACE on a co-branded page
    • ACE handles all donation processing, tracking, and reporting.

  • Digital Infrastructure

    • ACE provides a secure digital wallet to distribute funds on your behalf
    • Your parents and schools have access to a personalized dashboard and real time data and analytics

  • Revenue Sharing & Growth Support

    • ACE retains a portion of the funds to manage the program effectively and ensure full compliance, while your organization receives the remaining funds to reinvest in advancing your mission and creating greater impact

Strategic Partners: A Win-win Solution

As organizations evaluate the possibility of forming Scholarship Granting Organizations (SGOs), they will soon discover the overwhelming administrative and technological challenges of the effort.

  • ACE is positioned to meet this need through its proven platform and 26 years of scholarship granting experience—combining experienced people, streamlined processes, and executional proficiency.
  • ACE offers a smarter solution—a partnership that leverages its established infrastructure and innovative technology in a mutually beneficial collaboration.
  • This means organizations can avoid the operational complexities and startup costs of establishing and operating an SGO while still taking advantage of the Education Freedom Tax Credit opportunity to expand their impact.

501(c)(3) Formation & Operational Requirements for SGOs

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  • Formation Process & Cost

    • 501(c)(3) legal filing, IRS approval, state registration

  • Financial Efficiency & Overhead

    • 90% of funds raised go directly to scholarships
    • Overhead capped at 10% must cover all associated operational, marketing and fundraising costs

  • Legal & Regulatory Compliance

    • Register for charitable solicitation in each state
    • Comply with state and federal laws
    • Meet state and federal eligibility laws
    • Legal and financial audits to meet IRS / state standards

  • Program Operations

    • Family qualification and selection process
    • Awarding scholarships and funding schools and vendors

  • Staffing & Support

    • Customer support for families and providers
    • Program management to oversee scholarship operations

  • Fundraising and Marketing Strategy

    • Dedicated team for donors, families and schools / vendors

  • Technology to Scale

    • Digital, low-touch /high-volume operating model
    • Multilingual capabilities
    • Data privacy / security compliance, FERPA, SOC2