North Carolina Children Deserve Educational Freedom

NC Accord Kids is a branded scholarship platform supported by the North Carolina Christian School Association (NCCSA) and the American Association of Christian Schools’ Children’s Scholarship Fund. Through this platform, donors are connected to Accord Kids, the approved Scholarship Granting Organization (SGO) operated by the American Association of Christian Schools’ Children’s Scholarship Fund, which is responsible for receiving charitable contributions and distributing at least 90% of funds as scholarships to eligible North Carolina K–12 students seeking a private school education.

The Education Freedom Tax Credit is a federal program established under the Working Families Tax Cuts Act. Donors receive a dollar-for-dollar federal income tax credit of up to $1,700 per year (the same $1,700 limit applies to single and joint filers) for qualifying contributions to an SGO. Unlike a deduction, a tax credit directly reduces taxes owed.

On May 20, 2026, the North Carolina House voted 73–46 to override Governor Josh Stein’s veto of House Bill 87. On June 3, 2026, the North Carolina Senate completed the override — enacting HB 87 into law. North Carolina is now officially opted into the federal Education Freedom Tax Credit program. The program is awaiting final guidance from the U.S. Treasury Department before SGO recognition begins.

Contributions to the approved Scholarship Granting Organization (SGO) are expected to open on January 1, 2027. North Carolina is now officially opted in — so once the SGO recognition process begins, eligible NC students will be able to receive scholarships from your contribution. Reach out now and we will walk you through the donation process when contributions open.

Students who are eligible to enroll in a public elementary or secondary school in North Carolina and whose household income does not exceed 300% of the area median gross income may qualify to receive scholarships. Most North Carolina families fall within this income range. See income eligibility levels by county → Look up your county's income limit →

For most donors, the out-of-pocket cost is $0 — because the federal tax credit offsets the donation dollar-for-dollar. For example, if you donate $1,700 and owe at least $1,700 in federal income tax, your net cost after applying the credit would be $0. Use our tax scenario calculator to estimate your personal benefit.

Scholarships may be used for qualified K–12 education expenses as defined by IRC §25F — including tuition, fees, academic tutoring, special needs services, curriculum, transportation to and from school, and technology for educational use. Scholarship eligibility and award amounts are determined by the approved Scholarship Granting Organization (SGO), based on applicable guidelines and available funds.

Contributions to the approved Scholarship Granting Organization (SGO) are expected to open on January 1, 2027. Donors may pledge their interest now and will be guided through the donation process once giving opens. Final guidance and regulations from the U.S. Treasury Department and IRS are expected to be issued in 2026.

No. EFTC funds are scholarships for individual students — not grants to schools. The money must be used for qualified education expenses of eligible students, such as tuition, mandatory enrollment fees, and required course fees. Schools cannot direct scholarship funds toward capital campaigns, building projects, facilities improvements, or any other institutional expense. The scholarship is awarded to the student (or family) and applied toward costs charged at enrollment.

On your Form 1040, your total federal income tax liability is shown on Line 24 ("Total tax"). This is the number that matters for the EFTC — it represents your tax owed before any withholding or estimated payments are subtracted. If Line 24 is $1,700 or more, a $1,700 donation to Accord Kids could reduce that to $0. If you file a prior-year return, check the same line. Your tax software or preparer can pull this number quickly. You can also use our tax scenario calculator to estimate your 2027 liability before you file.

North Carolina already has the Opportunity Scholarship, which helps NC families pay private school tuition and required fees, with awards ranging from approximately $3,000 to $7,000 based on household income. The EFTC is a completely separate federal program. Key differences:

Source of funding: The Opportunity Scholarship is funded by state tax dollars. The EFTC is funded by private charitable donations — it costs the state nothing.

Income limits: The Opportunity Scholarship has its own state-set eligibility rules. The EFTC covers households at or below 300% of the area median income — roughly 93% of North Carolina’s K–12 students qualify.

Can you use both? Yes — a student can potentially receive both an Opportunity Scholarship and an EFTC-funded scholarship from separate organizations for separate expenses. They are complementary, not competing.

Bottom line: NC families can benefit from both programs. The EFTC adds federal private scholarship dollars on top of the Opportunity Scholarship — expanding opportunity further.

No — Accord Kids lets families apply for scholarships completely free of charge! There is no application fee and no cost to families at any point in the process. Contact your Christian school for more information about applying.