Redirect $1,700 of your federal taxes to a child's education.

The EFTC is a permanent federal tax credit — created by Section 25F of the Internal Revenue Code (added by the One Big Beautiful Bill Act, P.L. 119-21, in July 2025) — that gives individual taxpayers a dollar-for-dollar nonrefundable credit of up to $1,700 per person ($3,400 per married couple filing jointly) for cash contributions to a qualified Scholarship Granting Organization. SGOs use those funds to award K-12 scholarships to families earning up to 300% of their area's median income — roughly 9 in 10 K-12 students nationwide — covering tuition, tutoring, books, supplies, after-school programs, special education services, and educational therapy, at both public and private schools. Unused credit carries forward for up to five additional tax years. There is no aggregate national cap.

The EFTC requires each state to opt in for its students to receive scholarships. Governor Shapiro has not yet opted Pennsylvania in. If PA opts in, an estimated $483 million in scholarships could flow to PA students — about 80,000 of whom are currently on waitlists for education choice programs. Until PA opts in, donors here can still claim the federal credit by contributing to SGOs in opted-in states, and the scholarships go to students there. Either way, your $1,700 doesn't go to the federal government.

Most scholarship organizations are built for businesses or for after-tax charitable giving. 1 Abacus Fund is built around the donor: the federal Education Freedom Tax Credit reimburses your contribution in full, so your net cost is zero. We pair that with hands-on support for Pennsylvania donors and families, and a streamlined path for employers who want to help their teams take part. Employers — reach out through our For Employers page for the details.

1 Abacus Fund is pre-launch. Our 501(c)(3) Scholarship Granting Organization — 1 Abacus Fund — is forming now, with IRS determination expected ahead of the program's January 1, 2027 effective date. We commit to publishing the official EIN, the IRS determination letter, our annual financial audit, and our Form 990 as each becomes available. Our internal target is to direct 90% or more of every donation to scholarships — the federal statutory floor — and we will publish the actual ratio annually. The operating entity is FundEDU, a for-profit Pennsylvania business that provides marketing, technology, and program administration to 1 Abacus Fund under a Management Services Agreement, governed by 1 Abacus Fund's independent board. Read more on the How We Operate page.