Posted: Fri, 10/14/2011 - 11:29am Updated: Tue, 06/20/2017 - 2:26pm

Indiana Code 6-3.1-30.5 and Indiana Code 20-51 create a School Scholarship and School Scholarship Tax Credit Program. Funding for scholarships come from private, charitable donations to qualified scholarship granting organizations (SGOs). Donors (individuals or corporations) are eligible to take advantage of a 50% tax credit. While there are no limits on the size of qualifying contributions to an SGO, the entire tax credit program has a limit of $9.5 million for FY2017. This permits up $18 million in donations and scholarships for FY2017. Information about total tax credits awarded to date can be found at

A scholarship granting organization is eligible for certification from the Indiana Department of Education if it is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code and is organized at least in part to grant school scholarships. An SGO cannot limit the scholarships it provides under the program to children attending a particular school. SGOs are required to meet organizational and financial reporting requirements.

Parents may apply for scholarships from a certified SGO, which may establish certain requirements for the scholarships they provide. A student is eligible to apply for the program if the student is a member of a household with an annual income of not more than two hundred percent (200%) of the amount required to qualify for the federal free or reduced price lunch program.

Both the Indiana Department of Revenue and Indiana Department of Education have adopted rules to implement the program. The Indiana Department of Education has created an application and agreement for certification as a scholarship granting organization.
An organization that seeks certification as an SGO must submit the application and agreement as well as documents that establish eligibility under applicable statutes and rules. The documents must include:

  1. Proof of 501(c)(3) status.
  2. Proof, through articles of incorporation or other documents, that the organization is organized at least in part to grant school scholarships.
  3. Program policies.
  4. Program procedures.
  5. Promotional or descriptive materials about the program, including eligibility criteria and application forms.

The application and supporting documentation are submitted to:

SGO Certification
Attn: Choice Scholarships
Indiana Department of Education
South Tower, Suite 600
115 W. Washington Street
Indianapolis, IN 46204

Supporting Documents