What is an SGO scholarship in Indiana?
An SGO scholarship is private money, raised by a certified nonprofit and passed to families at partner schools. Donors get a 50% credit on Indiana taxes, and the whole credit program is capped at $18.5 million each state fiscal year.
Each SGO writes its own rules on top of the state floor: legal settlement in Indiana, age four to 21 by August 1, and household income within 400% of the free and reduced-price lunch line.
Which SGOs give scholarships at Indianapolis schools?
The Institute for Quality Education (formerly Education Choice Charitable Trust), Sagamore Institute Scholarships for Education Choice and the Lutheran SGO of Indiana are the three that appear most often beside Marion, Hamilton, Hendricks and Johnson county schools on IDOE's October 2026 partner list. IQE alone awarded 6,224 scholarships worth $12,805,073 in 2024-25.
105 schools in our file are on that partner list. Ask the school which SGO it works with; you generally apply through that SGO, not the state.
Can you use an SGO scholarship with a Choice voucher?
Yes. Because the Choice award is capped at tuition and fees, an SGO grant is most useful where tuition runs above your district's voucher amount, or for a four-year-old in a school's pre-K, which Choice never covers.
Remember the income line: Choice dropped it for 2026-27, SGOs did not. A family earning more than 400% of the lunch-program threshold can hold a voucher but not an SGO scholarship.
| State SGO program | Federal Education Freedom Tax Credit (2027) | |
|---|---|---|
| Donor benefit | 50% Indiana tax credit | Up to $1,700 federal credit per taxpayer |
| Student income test | Within 400% of the lunch-program line | Within 300% of area median income |
| Where students can be | Participating accredited nonpublic schools | Public, charter, nonpublic and homeschool settings |
| Starts | Running since 2010 | January 1, 2027 |