A federal tax credit for your gift, not just a deduction.
Sierra Summit Scholarship Fund is a Scholarship Granting Organization (SGO) under Section 25F of the Internal Revenue Code. Contributions you make to an eligible SGO like ours can qualify you for a federal income tax credit — a dollar-for-dollar reduction in what you owe, which is generally more valuable than a standard charitable deduction.
Credit vs. deduction — what's the difference?
A typical charitable deduction
Lowers the amount of income the IRS taxes you on. Its value depends on your tax bracket, and only helps if you itemize.
The Section 25F credit
Reduces your federal tax bill directly, dollar for dollar, up to an annual limit set by the IRS. You generally cannot also claim a charitable deduction for the same contribution — the credit is claimed in lieu of the deduction.
Section 25F is a provision of federal tax law and applies to contributions made in taxable years beginning after December 31, 2026. Annual credit limits and eligibility depend on your individual tax situation. Sierra Summit Scholarship Fund cannot provide tax advice — please consult a qualified tax professional or the IRS for guidance specific to your return.
How Section 25F keeps SGOs like ours accountable
In exchange for making this credit available to donors, the law holds scholarship granting organizations to a clear set of rules. Here's what we commit to as a condition of our status:
90% goes to scholarships
We must spend at least ninety percent of our income on scholarships for eligible students each year.
Funds are kept separate
Contributions are held in one or more dedicated accounts, never commingled with other organizational assets.
Scholarships reach many students
We provide scholarships to ten or more students, who do not all attend the same school.
No earmarking
Donors cannot direct or earmark a contribution for the benefit of any particular student.
Renewal & sibling priority
When awarding scholarships, priority goes first to students who received one of our scholarships the prior year, then to siblings of current recipients.
Verified eligibility
We verify that every recipient is an "eligible student" as defined under Section 25F before a scholarship is awarded.