How does an SGO work with schools?
Scholarship Granting Organizations award FSTC scholarships to students based on the SGO’s unique mission. For example, an SGO might support students in attending a particular type of school or in participating in science-based after-school programs.
Schools often develop close working relationships with SGOs. SGOs are nonprofit organizations that collect donations and distribute scholarships that families can use toward tuition and other educational expenses. Often, the SGO determines students’ eligibility, though that can also be done through tuition payment companies that require financial surveys.
The relationship typically works as a three-part partnership among families, schools, and SGOs:
- SGOs raise (with the help of the schools) and distribute scholarship funds.
- SGOs act as intermediaries between donors and students.
- Schools participate as approved partner schools.
- Private K–12 schools generally must meet state or SGO eligibility requirements to receive scholarship students. SGOs may be able to create these requirements, or the federal or state government will. The details of this issue will be clearer when the federal guidance is released by August 2026. These requirements may include accreditation, nondiscrimination policies, financial reporting, or tuition transparency. Some SGOs actively recruit schools into their networks.
- Families apply through SGOs while enrolling in schools.
- Families typically apply to both the school and the SGO separately for tuition assistance. Schools often help families navigate the application process, verify enrollment, and coordinate scholarship disbursement. Scholarship payments flow directly from the SGO to the school on the student’s behalf
In practice, these relationships can become highly collaborative. SGOs may help schools increase enrollment, broaden socioeconomic diversity, and stabilize tuition revenue.
