An SGO, or Scholarship Granting Organization, is a nonprofit that collects donations and awards scholarships to eligible K–12 students. SGOs verify family eligibility, prioritize students according to federal rules, distribute scholarship funds, and report on how donations are used. They serve as the connection point between donors, families, and schools.

Individual donors can contribute any amount to a qualified Scholarship Granting Organization. However, only up to $1,700 per year qualifies for a 100 percent federal income tax credit. This tax credit ensures that eligible contributions incur no cost to the donor.

Families with K–12 students in Illinois can apply for scholarships if they meet the income guidelines set by the Federal Scholarship Tax Credit Program. Eligibility is based on household income, and whether the student is eligible to attend a K-12 school in Illinois. Scholarship Granting Organizations (SGOs) verify all documentation and guide families through the process.