Tax Credit Scholarships FAQs


Below please find an overview of the scholarships, including important information for donors and scholarship-eligible families.

What are tax credit scholarships?
Tax credit scholarships provide an Illinois state income tax credit (not just a deduction, like with other charitable contributions) to individuals and corporations that contribute money to a non-profit Scholarship Granting Organization (SGO). That SGO then awards scholarships to eligible students from low-income families.

What is a Scholarship Granting Organization?
A Scholarship Granting Organization (SGO) is an independent 501(c)(3) non-profit organization that is responsible for the following, among other things:

  • Receiving donations from individuals and corporations;
  • Receiving and processing scholarship applications from students/families; and
  • Distributing scholarships to eligible students/families in accordance with the law.

SGOs must determine whether students meet the income eligibility requirements to receive a scholarship and must distribute scholarships to eligible students on a first come, first served basis. SGOs must honor restrictions placed on donations from individuals, if any.

When are the scholarships available?
Donors can now make contributions to tax credit scholarships. Donations will be distributed to families for the 2020/2021 school year.

Families need to apply for tax credit scholarships through a nonprofit organization that will distribute scholarships, instead of Covenant Christian School directly. Covenant Christian School is working with two SGOs: ACSI Children Education Fund dba Children’s Tuition Fund Of Illinois and Empower Illinois

Tax credit scholarships are awarded on a first come, first served basis.

Who is eligible to receive a scholarship?
K-12 students with limited financial resources and income up to 300 percent of the federal poverty level, are eligible to receive tax credit scholarships. Before April 1, 2019, priority will be given to students from each of the following categories:

  • Members of a household whose previous’ year’s total annual income does not exceed 185 percent of the federal poverty level ($46,435 for a family of four); OR
  • Reside within a focus district* OR
  • Received a scholarship from a scholarship granting organization during the previous school year; OR
  • Siblings of a current scholarship recipient.

After April 1, 2019, all other qualifying students will be considered for scholarships, subject to availability of funds.

For more information on scholarship eligibility,

What age students are eligible for tax credit scholarships?
Scholarships are available for eligible students in kindergarten through 12th grade.