Everyone Can Be a Philanthropist: A New Opportunity for Alabama Schools
What if your school's next donor doesn't live in Alabama?
Beginning in 2027, the Education Freedom Tax Credit (EFTC) will give eligible taxpayers a new way to support K-12 education through qualifying Scholarship Granting Organizations (SGOs).
For individuals, the federal tax credit is up to $1,700 per year. Under the latest Treasury guidance, married couples filing jointly can potentially claim up to $3,400 when each spouse makes a qualifying $1,700 contribution.
For Alabama schools, EFTC represents more than another source of scholarship funding. It creates an opportunity to think differently about who can participate in supporting students.
Everyone can be a philanthropist
Philanthropy can sound like something reserved for people with significant wealth. But a federal tax credit changes that equation.
Eligible taxpayers may be able to make a qualifying contribution to an SGO and receive a dollar-for-dollar federal tax credit for that contribution, up to the applicable limit.
That means someone doesn't have to write a large check or establish a foundation to make a meaningful investment in educational opportunity. They can simply choose to support scholarships.
And under EFTC, that choice can extend beyond their own state.
A national opportunity for Alabama schools
Thirty states have opted into the federal program for 2027. Twenty have not.Taxpayers who live in a state that has not opted in can make a qualifying contribution to an SGO in a participating state, including Alabama.
There's an important distinction for Alabama schools, too. Under EFTC, donors can earmark a contribution for a particular participating school. The contribution still goes through a qualifying SGO, but donors can designate the school they want to support.
That combination creates a new opportunity for schools to reach people who already have a reason to care.
Think about an alum who moved to Texas. A grandparent who lives in Georgia. A former family now living in North Carolina. An alum who lives across the country but still considers your school part of their story.
They may no longer live in Alabama, but their connection to your school can remain. EFTC gives those supporters a potential new way to turn that connection into an investment in students.
Start with the community you already have
Schools don't need to build a national donor network from scratch. They can start with the people who already know their school and understand its impact.
Reconnect with alumni. Reach former families. Think about grandparents and extended family members. Consider supporters who have moved away but still want to see students succeed.
The question isn't simply, “Who lives near our school?”
It's “Who cares about our school?”
That shift could open the door to a much broader community of supporters.
Alabama has an opportunity to make that community bigger than its borders.
Everyone can be a philanthropist. And with EFTC, supporting an Alabama school doesn't necessarily have to start in Alabama.










