November 19, 2025 // Diocese

SGOs Help to Fund Future Saints 

Todays Catholic

As Catholics with our eyes set on eternity, we work together today to build a future that secures a pathway to communion with God for the next generation. One of the most important ways we work together for this is through supporting Catholic education. As Pope Leo XIV writes in his recent apostolic letter, “Educating is an act of hope and a passion that is renewed because it manifests the promise we see in the future of humanity.”

As Dr. Alex Giltner, secretary of the Secretariat for Evangelization and Catechesis for the Diocese of Fort Wayne-South Bend explains: “Catholic education is more than just information transfer, skills training, and inculcation into social participation. Catholic education is formation of the whole person – mind, body, and spirit – in knowledge, yes, but also in virtue, character, and wisdom, so that our students can discern and pursue the true, the good, and the beautiful.

For these reasons, it is obvious why the unparalleled opportunity for education and formation in our Catholic schools is desirable, but it remains aspirational for many families due to financial barriers to entry.

As David Maugel, superintendent of Catholic schools writes: “The Diocese of Fort Wayne-South Bend has been deeply blessed with five consecutive years of growth, allowing us to serve over 14,000 children with a faith-filled, excellent education. While this is wonderful, our schools have the capacity to welcome and serve even more students. For many families, the financial commitment is the greatest challenge to joining our Catholic school community.”

The fact that students in our diocese seek but are unable to find funding to secure their Catholic education is an obstacle we must all come together to overcome. As Pope Leo XIV instructs, “Where access to education remains a privilege, the Church must push to open doors and invent new paths, because ‘losing the poor’ is equivalent to losing the school itself.”

Fortunately, the state of Indiana provides us with such a pathway through a charitable giving program that benefits students in need while rewarding the generosity of donors: scholarship giving organizations (SGOs).

SGONEI

Since 2011, the Scholarship Giving Organization of Northeast Indiana (SGONEI) has existed to bridge the gap between aid from Choice Scholarships (vouchers) and the true cost of tuition at our 43 diocesan schools. While we have been blessed with the support of many parishioners through the years, the program has significant room for growth, and in turn many more students to benefit with an education in our faith.

SGONEI offers need-based scholarships to low- and middle-income families making less than 400 percent of free and reduced lunch thresholds. Pastors and principals work in concert to determine the true need of each family and are able to tailor their tuition aid package to include SGO dollars where needed so the door to a Catholic education does not close on any interested students.

Maugel explains why SGOs are “a vital source of support,” saying: “Through your generous contributions, SGO funds provide our parish schools with the critical resources needed to bridge the gap – offsetting tuition costs that traditional Choice Scholarships and other parish subsidies cannot fully cover. This support ensures that a high-quality Catholic education is accessible to financially struggling families.”

Donors to SGONEI are able to designate their gifts to a specific school or give broadly to our unrestricted fund, which we use to meet critical tuition needs at our most under-resourced community schools.

Additionally, our youngest students in pre-K do not qualify for Choice Scholarship aid, leaving families with little financial assistance for early education while making it more difficult for our schools to organically seed and grow their enrollment pipeline. In these instances, SGO scholarships are available to the youngest members of our community, providing them with the opportunity to learn about Jesus and infuse their lives with Christian values as they begin their education.

Holy Cross Father Jim Fenstermaker. pastor at Holy Cross Parish and School in South Bend explains by saying: “While the School Choice vouchers have been an important support to the majority of our school families, we rely a great deal on SGO funds to assist our families with children in pre-K.  We have two sections of that grade, and so we need to provide adequate financial assistance to a large number of families. While we have some smaller funding sources, the vast majority of this assistance to our pre-K families comes from SGO funding.”

We remember Jesus’ words in Matthew 19:14: “Jesus said, ‘Let the little children come to me, and do not hinder them, for the kingdom of heaven belongs to such as these.’”

Tax Credit Scholarships 

While the true rewards of charity await us in heaven, SGO giving does provide some tax benefits for donors here on earth. Donors do not go unrewarded, as the state of Indiana extends a generous 50-percent tax credit for SGO gifts coming off the bottom line of the donor’s Indiana tax liability, making it one of the most attractive charitable giving benefits available. For example, if a gift of $1,000 is made to the SGO, the donor can claim a $500 tax credit on Indiana state taxes.

SGOs are also known as “tax credit scholarships” because they are a unique giving vehicle that allows donors to direct a portion of their taxes toward a cause in which they believe – specifically private education.

This can make the charitable dollar go a lot further. If the $1,000 donation is part of a person’s tithing strategy, then the donor can take the $500 tax credit and give it back to the SGO, ultimately giving their parish school $1,500 for the cost of $1,000. And, of course, the donor would get another $250 credit, which could be used to keep this virtuous cycle of maximizing the impact of the donor’s dollar going.

Additionally, the federal government also extends a traditional tax deduction from the remaining 50 percent of the gift, depending on whether the donor itemizes their deductions and what their tax bracket is. So, that $1,000 gift could play out as follows:

• $1,000 – Gift to SGONEI

• ($500) – Tax credit from the state of Indiana

• ($50) – Federal tax deduction (if you’re in the 10 percent tax bracket)

• $450 – True out-of-pocket cost of your $1,000 gift.

Try out our True Cost of Giving Calculator to see how these benefits bear fruit in various scenarios at sgonei.org.

This is a versatile charitable tax incentive that can be utilized in many different ways depending on a donor’s financial goals and capital structure. The SGO organization is able to accept gifts of nearly all asset classes, including:

• Appreciated securities (including stocks, bonds, and mutual funds)

• IRA Required Minimum Distributions (RMD)

• Gifts in Kind (tangible assets)

• Real estate

• Gifts of Grain

• Recurring credit card donations

By not limiting the gift to cash, the donor can work with their tax advisor or wealth manager to explore the benefits of giving with alternative assets to address potential capital gains or a myriad of other tax liability concerns.

These tax incentives are offered not only to individuals but also to any entity with a tax liability such as corporations, LLCs, S-Corps – all of which qualify for an uncapped 50-percent Indiana state credit plus the additional federal deduction. This enables both well-capitalized corporations and small businesses alike to do good in our community while receiving a financial benefit.

Companies with matching gift programs can hyper charge these benefits, matching their employees’ SGO gifts with a 1:1 or even 2:1 gift from the company, doubling the dollars the school receives while extending tax benefits to both parties. (Learn more about corporate matching gifts on our website at sgonei.org and check to see if your company already offers this benefit.)

There’s no cap on individual contributions, but there is a state-wide max of $18.5 million per year in credits the Indiana Department of Revenue will award each fiscal year (ending June 30). So, planning must be done accordingly! The amount of credits still available can be tracked at in.gov/dor/i-am-a/individual/school-scholarship-credit/.

Although the details of this program will change in coming years per new legislation, in some ways, they are slated to become even more attractive. Beginning in 2027, the federal benefit will become a dollar-for-dollar tax credit of up to $1,700 per tax payer. Although this benefit does not extend to corporations, it is sized appropriately to maximize the number of members of our community who can participate in the great charity of educating the less fortunate.

Impact

As we enter this season of giving, we hope to remember the next generation of future saints who need support in order to grow in their relationship with Christ.

David Maugel explains, saying: “We are incredibly thankful for your partnership in this mission. By helping to reduce the financial burden, you are truly embodying the call of the Church, ensuring that our doors remain wide open to all who seek this opportunity. Your gift allows us to follow the spirit of Pope Leo XIV, who teaches that our ‘preferential choice for the poor is a source of extraordinary renewal’ for our community.”

Likewise, Father Fenstermaker says: “It’s so important that people in the diocese, and businesses as well, contribute to the SGO for the sake of Catholic education for our children. With the tax credit they receive by contributing to the SGO, it’s really a win-win for everyone. As pastor of a growing and vibrant school, I am so grateful to everyone who supports Catholic education through the SGO program.”

All the faithful of our diocese are invited to join the legacy of a Christ-centered future for our children with a gift now to SGONEI to fund future saints so that all children regardless of socioeconomic status may learn how to live on earth as they will in heaven.

Julie Bills is the development director for the Scholarship Giving Organization of Northeast Indiana. To learn more, visit sgonei.org or email her at [email protected].