Tax Credit Scholarships, better known as “SGO Scholarships,” are scholarships awarded by the Scholarship Granting Organization to low- and middle-income families to help them afford the non-public school of their choice.

No. The official name for a voucher is a “School Choice Scholarship.” One key difference between SGOs and vouchers is that SGO scholarships are funded by charitable donations, while vouchers are funded by state tax distributions.

The Lutheran Scholarship Granting Organization of Indiana, Inc. (Lutheran SGO) is a separately incorporated, 501(c)3 charitable organization, created to provide SGO scholarships for non-public schools in Indiana, like Crossroad Academy.

Gifts to the SGO are tax-deductible to the full extent of the federal charitable tax laws. Currently, if you receive the 50% state tax credit for your gift, you may be able to apply the remaining 50% of the gift as a federal tax deduction if you can itemize deductions on your federal tax return.

A donation of $10,000 could result in the following benefits:

• A $5,000 tax credit against your Indiana state tax liability
• A $5,000 deduction eligibility for your federal tax return
• Knowing that you helped provide scholarships for students to receive a specialized education

Support for SGO scholarships can come from many of the same sources as any gift to charity, including checks, bank cards, stocks, IRA rollovers, agricultural commodities, cryptocurrency, and more.

As of the 2022-23 fiscal year, there is an $18.5 million per-fiscal-year, across the state, cap on available state tax credits for up to $37 million in donations statewide with expected increases in the future. There are no limits on the size of contributions eligible per company or individual; you or your business could donate “$5 or $5,000,000”, depending on the remaining tax credits available statewide. Think of the process as a “first donations in, first tax credits awarded” process. Every year on July 1 the amount of credits available is replenished. 

You can reduce or eliminate up to the full amount you have paid or will owe the state in any given tax year. If already paid, you can receive a refund up to what you have already paid in state taxes. Should you be due more credit than you can use for the tax year, you may roll over the remaining credits for up to an additional nine years. Additionally, if you pay quarterly estimated taxes, you could
couple an SGO donation with a reduced or eliminated quarterly payment to the state. Please consult your own tax advisor for your own, unique situation; we cannot provide tax or financial advice.

Donors can designate their donation to any Indiana non-public school that has partnered with the Lutheran SGO. There is also a general fund option to benefit students in need at any of the Lutheran SGO schools. To donate to Crossroad Academy, click here, or visit LutheranSGO.org to donate or get instructions to make a gift of appreciated securities.

Anyone can support SGO scholarships! However, to receive the tax credit you must pay or owe Indiana state taxes. Donations can come from corporations, partnerships, LLCs, PCs, the self-employed, or individual taxpayers.