What is a SGO?

A Scholarship Granting Organization (SGO) is a nonprofit 501(c)(3) organization that receives contributions from donors and grants educational scholarships to eligible students in Ohio. Individuals and entities that contribute to SGOs participating in the program can receive a tax credit. The SGO program was enacted in 2021 as part of Ohio House Bill 110.

Can I designate my donation to a specific BCSO school or student?

Yes, donations can be designated for a specific BCSO-member school or be undesignated and put in the general fund. Donors may designate their donation for a particular family unless the donation personally benefits the donor.

How do I donate to the SGO?

To donate, click Donate. It will take you to the donation page where you will input your information. Donations can be accepted online or by check mailed to 2400 Chandlersville Rd., Zanesville, OH 43701.  An email confirmation will be sent. Following this process, the donor will receive donation receipt and instructions to file for a tax credit.

How does the tax credit work?

You will claim this credit when you file your state income tax return. The nonrefundable credit will reduce your state tax liability. If you do not have a state tax liability, you will not receive a tax benefit from your donation. The amount of the tax credit you can claim is equal to 100% of the amount you donate up to $750.

What is the general fund?

Undesignated funds are those that have been donated to the SGO with no specific designation. Undesignated funds are awarded to students by income level. Awards are prioritized for low-income students.

What is the difference between a tax deduction and a nonrefundable tax credit?

A tax deduction reduces your taxable income. It does not provide a dollar-for-dollar benefit. A tax credit directly reduces the amount you owe in taxes. In the SGO program, each dollar you donate reduces what you owe in taxes by a dollar. A nonrefundable tax credit limits your tax benefit to no more than what you owe in taxes.

Who can qualify for the tax credit?

Any taxpayer donating directly or through a pass-through entity to the SGO is eligible for the tax credit. A pass-through entity is a S corporation, partnership, or a limited liability company treated as a partnership for federal income tax purposes. Visit the IRS website for more information about business structures.

Is there a cap or limit to the SGO and tax credit?

There is no cap to donations to SGOs across the state. Any amount may be donated to the SGO, however, only $750 per individual or entity may be claimed as a tax credit each year.

Can I still take my SGO gift as a deduction on my federal taxes?

Yes, your gift to the SGO is tax deductible. Consult your tax advisor to determine your specific tax situation. For more information, visit https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions.