You Can Transform Jewish Education!
Beginning January 1, 2027, a new federal tax credit gives YOU the opportunity to direct a portion of your federal income taxes toward making Jewish education more accessible and affordable for children and families across America.
Contribute up to $1,700 per individual or $3,400 per married couple filing jointly and receive a dollar-for-dollar federal income tax credit.
How it works
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You Contribute
Make a contribution to the Chabad Education Fund.Make a contribution to the Chabad Education Fund.
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A Child Benefits
Eligible families apply and receive scholarships towards their child’s Jewish education.Eligible families get Jewish school scholarships.
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You Receive a Tax Credit
Claim a dollar-for-dollar federal income tax credit when you file your taxes.*Get a dollar-for-dollar credit on federal taxes.*
YOU Can Make A Jewish Education Attainable.
Help a child discover their Jewish heritage, strengthen their Jewish identity, and build a lifelong connection to the Jewish people.
All at no additional cost to you.
Across America, families are seeking meaningful ways to strengthen their children’s Jewish identity, connect them with their heritage, and instill a lasting sense of Jewish pride. Yet for too many families, the cost of a Jewish education remains a significant barrier.
YOU can help change that! Beginning January 1, 2027, the new Federal Scholarship Tax Credit allows you to direct a portion of your federal income taxes to fund educational scholarships for students in grades K–12. For every dollar you contribute, you can receive a dollar-for-dollar tax credit, up to $1,700 for individuals and $3,400 for couples filing jointly.
You can choose where your tax dollars make a difference! The Chabad Education Fund is a Scholarship Granting Organization dedicated to harnessing the strength and reach of Chabad’s nationwide network of over 1,000 community centers to maximize this opportunity and expand access to Jewish education for children across the country.
Your Taxes.Their Education.Our Jewish Tomorrow.
Get Ready to Give
Tell us a little about yourself, and we’ll keep you updated as the program launches.
Qualifying contributions can begin.
Last day to contribute for your 2027 tax credit.
Frequently Asked Questions
What is the Federal Scholarship Tax Credit?
Beginning January 1, 2027, a new federal tax credit allows eligible taxpayers to contribute up to $1,700 annually ($3,400 for married couples filing jointly) to a qualified Scholarship Granting Organization and receive a dollar-for-dollar federal income tax credit.
What is a Scholarship Granting Organization (SGO)?
An SGO is an eligible nonprofit organization that raises funds through the Federal Scholarship Tax Credit, and awards scholarships to help students with their education expenses.
Who is eligible to receive a scholarship?
Students from households earning up to 300% of their area’s median income, adjusted for household size, may qualify for scholarships.
Students must also meet applicable eligibility requirements, including residency in a participating state.
See our FAQs for Families for more information.
Am I eligible for the tax credit?
U.S. citizens and residents who make qualifying contributions to an approved SGO may be eligible, regardless of whether their home state participates in the program.
Will making a contribution cost me anything?
For eligible taxpayers, contributions can be offset dollar-for-dollar by a federal income tax credit, up to the annual limits.
For example, a qualifying $1,700 contribution can reduce your federal income tax liability by $1,700.
Can I choose where my contribution goes?
Yes! You can designate which participating state you would like your contribution to benefit.
The Chabad Education Fund also plans to offer donors the ability to direct their contributions toward scholarships at specific participating schools.
Federal regulations do not permit donors to designate a specific child or family to receive their contribution.
Does my governor need to opt in for me to donate?
No! You can contribute to an approved SGO in a participating state regardless of whether your own state has opted in.
Can married couples filing jointly receive a $3,400 credit?
Yes! Under the proposed Treasury regulations, each spouse is treated as a separate taxpayer, allowing a combined credit of up to $3,400.
Each spouse’s contribution must be properly identified and documented.
When can I start contributing?
Qualifying contributions can begin January 1, 2027.
What is the deadline to contribute?
To claim the credit for 2027, make your qualifying contribution by December 31, 2027.
You can then claim the credit when filing your 2027 federal income tax return in 2028.
How do I claim my tax credit?
Claim the credit when filing your federal income tax return using IRS Form 8525.
The Chabad Education Fund will provide the required contribution acknowledgment and donor information.
What if my tax credit exceeds my federal income tax liability?
Unused credits can be carried forward for up to five years, allowing you to use them against eligible federal income tax liability in future years.
How can I verify that the Chabad Education Fund is an approved SGO?
The IRS will publish an official list of approved SGOs. We will provide a link to our listing once available.
Can I contribute stock, cryptocurrency, or through a Donor-Advised Fund?
Contributions eligible for this credit must be made in cash or cash equivalents; gifts of stock, cryptocurrency, and distributions from Donor-Advised Funds do not qualify.
Can I contribute through my business?
The federal credit is available to individual taxpayers for qualifying personal contributions, not contributions made by corporations or other business entities.
Can I adjust my tax withholding or make recurring contributions?
Yes! You can make multiple contributions throughout the year, subject to the annual credit limits.
You may also be able to adjust your federal income tax withholding based on your expected credit. Consult your tax advisor before making changes.
More information to come.
Can I contribute more than $1,700 ($3,400 for married couples filing jointly)?
Yes! You can contribute more than $1,700 ($3,400 for married couples filing jointly). However, only the first $1,700 ($3,400 for married couples filing jointly) is eligible for the federal tax credit.
Any amount above these limits would be treated as a traditional charitable contribution.
Is my child eligible for a scholarship?
Your child may be eligible if they meet the following requirements:
- Are enrolled in grades K–12.
- Reside in a state whose governor has opted in to the Federal Scholarship Tax Credit.
- Live in a household with income at or below 300% of the Area Median Income (AMI), adjusted for family size.
Is there a maximum scholarship amount?
There is no fixed federal cap on individual scholarship amounts. The amount awarded will depend on available funds and the scholarship policies and procedures established by the Chabad Education Fund’s Board.
My child attends school in a different state than where we live. Are we eligible?
Yes! Eligibility is based on the child’s state of residence, not the state where their school is located.
If your home state participates in the program and your child meets the other eligibility requirements, they may qualify for a scholarship.
Which states have opted in?
A list of participating states will be published following the January 1, 2027, initial opt-in deadline.
What is the deadline for states to opt in?
States have until January 1, 2027, to notify the Treasury of their intent to participate, and until February 15, 2027, to submit their lists of approved Scholarship Granting Organizations (SGOs).
When will scholarship applications open?
The application timeline has not yet been finalized. Please subscribe for updates to be notified when applications open.
What expenses can scholarships cover?
Scholarships can help cover eligible K–12 educational expenses, including tuition and fees.
We are awaiting additional Treasury guidance regarding other eligible expenses and will provide updates as more information becomes available.
Who determines scholarship amounts?
Scholarship amounts will be determined according to the policies, priorities, and procedures established by the Chabad Education Fund’s Board, based on available funding.
Can my child receive scholarships from more than one SGO?
Yes. Federal rules do not generally prohibit receiving scholarships from multiple SGOs. However, the same educational expense cannot be reimbursed more than once.
Are scholarships considered taxable income?
No. Qualifying scholarships awarded under the Federal Scholarship Tax Credit program are not considered taxable income to the recipient.
Are scholarship payments made to families or directly to schools?
The Chabad Education Fund plans to make scholarship payments directly to participating schools on behalf of eligible students.
Can my child receive a scholarship if I contributed to an SGO?
Yes! Making a contribution to an SGO does not automatically disqualify your child from receiving a scholarship.
However, restrictions apply to certain significant contributors and other disqualified persons. Donors also cannot designate their contributions to benefit a specific child, including their own.
Which schools do you partner with?
The Chabad Education Fund plans to partner with Chabad-affiliated schools across the country. A list of participating schools will be made available as partnerships are finalized.
Who receives priority for scholarships?
Federal law establishes the following priorities:
- Students who received a scholarship from the same SGO in the previous year.
- Siblings of students who received a scholarship from that SGO in the previous year.
Additional priorities and award criteria will be established in the Chabad Education Fund’s scholarship policies and procedures.
Can my school participate in the Chabad Education Fund?
Schools providing elementary or secondary education (K–12), as determined by state law, may be eligible to participate.
The Chabad Education Fund will be working with Chabad-affiliated schools across the country.
How does our school join?
Please complete the school sign-up form, and we will reach out to you.
Can we establish our own Scholarship Granting Organization (SGO)?
An SGO cannot serve only a single school. Schools may establish an SGO in partnership with other schools. However, the compliance and reporting requirements can make operating an SGO challenging without sufficient scale.
Who determines scholarship awards at our school?
The process for determining scholarship awards is still being developed by the Chabad Education Fund.
How will families apply for scholarships?
Families will apply through an online portal provided by the Chabad Education Fund.
What is the deadline for states to opt in?
States have until January 1, 2027, to notify the Treasury of their intent to participate, and until February 15, 2027, to submit their lists of approved Scholarship Granting Organizations (SGOs).
Can donors designate contributions to our school?
Yes! The Chabad Education Fund plans to allow donors to designate their contributions toward scholarships at specific participating schools. Donors cannot designate individual students or families.
Is there a maximum scholarship amount?
There is no fixed federal cap on individual scholarship amounts. The amount awarded will depend on available funds and the scholarship policies and procedures established by the Chabad Education Fund’s Board.
Does the government impose additional requirements on participating schools?
The Federal Scholarship Tax Credit does not generally impose additional federal operational requirements on participating schools. However, the Chabad Education Fund may require schools to provide information and documentation to ensure compliance with applicable laws and regulations.
Who can we contact with additional questions?
Please reach out to info@chabadeducationfund.com.