{
    "title": "As Deadlines Loom, a Faster Path to EFTC Readiness Includes LearningSpring for Fraud Protection and Rapid Onboarding of Scholarship Granting Organizations",
    "modified_at": "2026-10-13 04:15:03",
    "published_at": "2026-10-13 04:15:00",
    "url": "https://press.pandopublicrelations.com/as-deadlines-loom-a-faster-path-to-eftc-readiness-includes-learningspring-for-fraud-protection-and-rapid-onboarding-of-scholarship-granting-organizations",
    "short_url": "http://prez.ly/v9ie",
    "culture": "en",
    "language": "EN",
    "subtitle": "LearningSpring\u2019s Education Freedom Tax Credit Unified Program Management Infrastructure\u2122 gives states a tracked, documented workflow to onboard SGOs and prevent fraud, so that SGOs are certified and approved prior to the February 15, 2027 submission deadline. ",
    "slug": "as-deadlines-loom-a-faster-path-to-eftc-readiness-includes-learningspring-for-fraud-protection-and-rapid-onboarding-of-scholarship-granting-organizations",
    "body": "<p>&nbsp;</p><p><strong>DENVER, Colo - October 13, 2026 - </strong>On October 1, 2026, the Treasury Department issued clarifying guidance and critical deadlines for states to stand up their federal Education Freedom Tax Credit (EFTC) programs. If a state misses the February 15, 2027 deadline to submit its perfected list to the IRS, it effectively prevents any organization in that state from qualifying as an SGO for 2027. <a href=\"https://learningspring.com\"><u>LearningSpring</u></a> is a turnkey solution for states that assumes the administrative, oversight, and fraud-prevention workflows and eases the paperwork burden they face while compliance deadlines loom.</p><p>A state may have opted in to the EFTC, but that does not mean its program is ready and operational. For states to be EFTC-ready, there are several dependent steps, with the states ultimately responsible for certifying SGOs before submitting their perfected lists to the IRS. </p><ul class=\"release-content-list release-content-list--bulleted release-content-list--align-inherit\"><li><span><strong>Existing SGOs</strong> may already have the organizational structure, tax-exempt status, and scholarship administration processes in place; however, they still need to submit documentation proving they meet federal EFTC requirements and applicable state requirements.</span></li><li><span><strong>New SGOs </strong>have a longer path to compliance by first establishing governance and bylaws, before obtaining tax-exempt status. Once they have their nonprofit designation, they still must develop scholarship administration procedures and secure approval in the states they intend to operate.</span></li><li><span><strong>States</strong> need time to receive applications from SGOs, verify their qualifications, and approve their scholarship application and awarding process, documentation, and compliance procedures. Once that process is complete, states must submit their final perfected lists of SGOs to the IRS by February 15, 2027.</span></li></ul><p>&ldquo;The U.S. Treasury Department has stated that states face a significant paperwork burden in compiling and submitting their perfected SGO list. This is only the tip of the paperwork iceberg. Treasury estimates states will invest 6,500 hours, or about 10 hours for every SGO a state certifies. However, as new SGOs apply, change status, or lose approval, that burden will grow, which makes having a third-party partner solution like LearningSpring absolutely essential,&rdquo; said Cecilia Retelle Zywicki, Co-Founder and CEO of LearningSpring. </p><p>&ldquo;There are only four months until the date when states must submit their perfected list of SGOs to the IRS. Given that many SGOs will be bogged down in paperwork of their own, states may have mere weeks to review every SGO&rsquo;s application. This bottleneck is one reason why having a compliance infrastructure partner like LearningSpring is so essential,&rdquo; she added.</p><p>LearningSpring&rsquo;s Unified Program Infrastructure supplies states with:</p><ul class=\"release-content-list release-content-list--bulleted release-content-list--align-inherit\"><li><span>Scalable infrastructure while preserving account-level control and oversight</span></li><li><span>Fraud prevention, due process, and duplicate-award safeguards</span></li><li><span>Built-in compliance controls</span></li><li><span>Fair, documented path to approval for SGOs</span></li><li><span>A unified platform serving families, schools, and providers</span></li><li><span>An Education Freedom Wallet&reg; \u200b </span></li></ul><p>&ldquo;With LearningSpring, states don&rsquo;t need to create new infrastructure to participate in the federal Education Freedom Tax Credit (EFTC) program. LearningSpring provides the solution states need to compile their SGO lists, meet federal deadlines, and manage SGO applications and scholarship compliance,&rdquo; Retelle Zywicki added.</p><p>&nbsp;</p><p><strong>About the Education Freedom Tax Credit</strong><br>\u200bTo date, 30 states have opted in to the EFTC, which allows families to apply to SGOs for scholarships that can be used to pay for qualified education expenses. The states&rsquo; responsibilities are to approve SGOs, to take reasonable steps to prevent fraud and abuse, and de-duplicate awards; processes that are made easier and more accurate with LearningSpring. The EFTC programs are funded by donors who can receive a dollar-for-dollar tax credit of up to $1,700 for individuals and $3,400 for married couples filing jointly when they contribute to an approved SGO. This tax credit is the first of its kind, allowing taxpayers to redirect dollars from their federal tax liability to a Scholarship Granting Organization (SGO) of their choosing. Find more information on the <a href=\"https://home.treasury.gov/news/press-releases/sb0641\"><u>October 1, 2026 Treasury Department press release</u></a>.</p><p><em>The Education Freedom Tax Credit is also known by several other names such as the Federal Education Tax Credit and the Federal Scholarship Tax Credit.</em></p><p>&nbsp;</p><p><strong>About LearningSpring</strong><br>\u200bLearningSpring is The School Choice Management Platform that helps states, schools, families, SGOs, and providers run modern education freedom programs with clarity and accountability. It unifies school discovery, eligibility, applications, payments, and compliance, enabling <a href=\"https://learningspring.com/solutions/fetc-management\"><u>partners to operate their Education Freedom Tax Credit on a single platform</u></a>. LearningSpring&#039;s solutions, including the School Choice Marketplace, Education Freedom Wallet&reg;, Federal Tax Credit Management, and complete School Choice Management for States, help families find their best-fit learning options, help schools and SGOs steward scholarships responsibly, and help states deliver transparent, auditable programs. Create a free family account, claim a school profile, and learn more at <a href=\"https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4669138-1&amp;h=4025934366&amp;u=https%3A%2F%2Flearningspring.com%2F&amp;a=https%3A%2F%2Flearningspring.com\"><u>https://learningspring.com</u></a>.</p><p>###</p><p>&nbsp;</p><p><strong>Media Contact:<br>\u200b</strong>Jennifer Harrison for LearningSpring<br>\u200bPando Public Relations<br>\u200b<a href=\"mailto:jennifer@pandopublicrelations.com\"><u>jennifer@pandopublicrelations.com</u></a></p><p>&nbsp;</p>",
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